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Reuters —California’s top state court on Thursday upheld a measure approved by voters allowing app-based services such as Uber and Lyft to consider drivers in the most populous U.S. state as independent contractors rather than as employees entitled to greater benefits. Whether gig workers should be treated as employees or contractors is a crucial issue for the ride-service industry. California is just one front in a nationwide legal battle over the classification of gig drivers and other contract workers. In June, Uber and Lyft agreed to adopt a $32.50 hourly minimum wage for drivers in Massachusetts and pay $175 million to settle a lawsuit by the state claiming they improperly treated drivers as independent contractors. A proposal that would allow app-based drivers to unionize will go before voters in the state in November.
Persons: Reuters —, Lyft, Uber, , Tia Orr, Organizations: Reuters, Service Employees International Union, SEIU, Employees, California Supreme Locations: U.S, California, SEIU California, Minnesota, Minneapolis, Massachusetts
A three-judge panel of the San Francisco-based court reversed a lower court ruling in 2021 that the ballot measure, known as Proposition 22, was unconstitutional. The Service Employees International Union (SEIU) and several gig drivers who challenged Prop 22 will likely appeal the decision to the California Supreme Court, the state's top court. Prop 22 was approved in November 2020 by nearly 60% of voters in California. It exempted app-based drivers from a 2019 state law known as AB5 that makes it difficult to classify workers as independent contractors rather than employees. "Across the state, drivers and couriers have said they are happy with Prop 22, which affords them new benefits while preserving the unique flexibility of app-based work," West said.
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