Uber and Lyft drivers remain independent contractors in California Supreme Court ruling

SACRAMENTO, Calif. -- The California Supreme Court ruled Thursday that app-based ride-hailing and transportation services similar Uber and Lyft tin proceed treating their drivers arsenic autarkic contractors alternatively than employees.

The unanimous determination by the state's apical tribunal is simply a large triumph for tech giants. It besides ends a yearslong ineligible conflict betwixt labour unions and tech companies implicit a instrumentality dictating the presumption of app-based work workers successful the state.

The ruling upholds a voter-approved instrumentality passed successful 2020 that said drivers for companies similar Uber and Lyft are autarkic contractors and are not entitled to benefits similar overtime pay, paid sick permission and unemployment insurance. Opponents said the instrumentality was amerciable successful portion due to the fact that it constricted the authorities Legislature's authorization to alteration the instrumentality oregon walk laws astir workers' compensation programs.

A little tribunal ruling successful 2021 had said the measurement was illegal, but an appeals tribunal reversed that determination past year. The California Supreme Court's determination means companies similar Uber and Lyft tin proceed their operations arsenic before.

Uber called the ruling "a victory" for drivers. Companies similar Uber, Lyft and DoorDash spent $200 cardinal connected a run successful 2020 to assistance the instrumentality pass.

"Whether drivers oregon couriers take to gain conscionable a fewer hours a week oregon more, their state to enactment erstwhile and however they privation is present firmly etched into California law, putting an extremity to misguided attempts to unit them into an employment exemplary that they overwhelmingly bash not want," the institution said successful a connection Thursday.

The ruling is simply a decision for labour unions and their allies successful the Legislature who fought to unafraid much rights for drivers.

"What's going connected is not just. It's not what California is about," said Nicole Moore, president of Los Angeles-based Rideshare Drivers United. "It's a bittersweet time for workers."

Labor unions vowed to proceed warring for drivers' occupation protections and benefits, noting that an earlier ruling successful the entreaty process had opened doors for the Legislature to walk laws to let drivers to articulation a union.

"We are committed to fiercely backing workers crossed our system who person been written retired and near down and helping them sound down large obstacles to winning their national rights," Service Employees International Union President April Verrett said successful a statement.

Lawmakers successful 2019 passed a instrumentality aimed straight astatine Uber and Lyft, mandating they supply drivers with protections similar minimum wage, overtime, wellness security and reimbursement for expenses. It changed the rules successful California of who is an worker and who is an autarkic contractor.

While the instrumentality applied to tons of industries, it had the biggest interaction connected app-based ride-hailing and transportation companies. Their concern relies connected contracting with radical to usage their ain cars. Under the 2019 law, companies would person to dainty those drivers arsenic employees and supply definite benefits that would greatly summation the businesses' expenses.

In November 2020, voters approved a ballot proposition to exempt app-based ride-hailing and transportation companies from the law. The proposition included "alternative benefits" for drivers, including a guaranteed minimum wage and subsidies for wellness security if they mean astatine slightest 25 hours of enactment a week.

Labor groups and drivers crossed the federation are pushing for much occupation protections, higher wages and accrued benefits. Drivers successful Massachusetts are rallying down what they picture arsenic a first-of-its-kind ballot question that could triumph them national rights if approved.