A California superior courtroom on Friday dominated Proposition 22
unconstitutional. The poll measure, accepted
by California voters in November 2020, categorised gig employees as
unbiased contractors. The brand new ruling offers a significant blow to Uber, Lyft and
different ride-hailing providers, who intend to attraction the choice. “We’ll
file an instantaneous attraction and are assured the appellate courtroom will uphold Prop
22,” the Shield App-Primarily based Drivers and Providers Coalition, which incorporates
Uber and Lyft, mentioned in an announcement
The November 2020 approval of the measure was a victory for ride-hailing
firms, who spent thousands and thousands to put it on the market. “We imagine Prop 22 was the
proper end result for riders and drivers of Uber,” Uber CFO Nelson Chai mentioned
within the firm’s This autumn earnings name.
Uber cited the accepted measure as contributing issue to
controlling its worth will increase and continued presence in California. “The
worth will increase are manageable when in comparison with the 100-plus enhance
related to conventional employment, [which] would have seen us exit most
markets in California—and never simply us, however our different rivals as effectively,”
Chai mentioned.
Ought to the ruling stand, Uber and different ride-hailing
firms might need to determine whether or not to observe by on such statements.
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