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