The California Supreme Court ruled that app-based ride-hailing and delivery services can treat drivers as independent contractors, upholding a voter-approved law. This decision favors tech companies like Uber and Lyft, allowing them to avoid providing benefits like overtime pay and paid leave.
Uber celebrated the ruling, emphasizing drivers' freedom to work as they choose. Labor unions expressed disappointment, with Nicole Moore of Rideshare Drivers United calling it an unjust outcome.
This ruling represents a win for Uber, Lyft, and DoorDash, who collectively spent $200 million to pass the law in 2020. It solidifies the autonomy of drivers but is viewed as a setback by labor unions advocating for job protections and benefits.
Despite this setback, labor unions remain committed to advocating for drivers' rights. The ongoing dispute illustrates the clash between the interests of tech companies and the labor movement in defining the employment status and rights of gig economy workers.
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