The California Supreme Court has ruled that gig workers registered with ride-sharing service companies should be considered independent contractors, not employees.
On the 25th (local time), the California Supreme Court dismissed a lawsuit filed by the Service Employees International Union (SEIU) and four drivers claiming that 'Proposition 22,' which recognizes Uber and Lyft drivers as independent contractors, was unconstitutional. Proposition 22 was passed in November 2020 with about 60% approval from California voters.
By siding with the ride-sharing companies rather than the gig workers, the California Supreme Court has ended years of legal battles over the legal status of gig workers. Gig workers refer to temporary workers who do not work full-time at one company but engage in short-term employment.
Ride-sharing companies such as Uber and Lyft have argued that if gig workers are considered employees, they would have to provide various benefits such as paid sick leave and health insurance, which would ultimately force them to cease services in California.
The Wall Street Journal (WSJ) analyzed that this California Supreme Court ruling could influence regulatory agencies worldwide that are grappling with similar issues regarding the legal status of gig workers.
Uber stated in a press release, "This ruling supports the will of 10 million Californians who want to provide drivers with unprecedented benefits and protections while maintaining their independence."
Ta'a Or, of SEIU California, said, "The union is disappointed with this ruling, but ride-sharing drivers will continue to organize and fight for their rights."
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