Odd jobs or employees? Successful appeal by Uber and Lyft: drivers are still regarded as contract workers

Beijing, March 14 (Xinhua) the California Court of Appeal overturned the lower court's decision on Monday, ruling that ride-hailing apps such as Uber and Lyft can continue to treat their drivers as independent contractors.

Uber car-hailing in November 2020, California voters voted for Proposition 22, allowing developers of ride-hailing and takeout apps to classify their drivers as independent contractors. In 2021, a judge in California ruled that the proposal was unconstitutional, saying it violated the power of the legislature to set standards in the workplace. California and a group representing businesses and other parties subsequently appealed the ruling. On Monday, the judge ruled in their favor.

The good news boosted the share prices of American ride-hailing and takeout companies. Uber, Lyft and Doordash all rose more than 4 per cent in after-hours trading.

Uber and other companies are engaged in a global tug-of-war with regulators over whether and how to provide more benefits to employees in the so-called gig economy, such as paid sick leave and health insurance. In the gig economy, applications assign personal tasks to a group of people who are usually regarded as independent contractors.