There’s more news out of California regarding the independent contractor vs. employee status of rideshare and delivery drivers, plus an expansion of a key safety feature from Uber. Read on to keep up with all the latest Uber–Lyft news, with special attention to what it means to for drivers like you.
Court rules California initiative to keep drivers as contractors
On Monday, March 13, an appeals court overturned an earlier ruling from a lower court that declared Prop 22 was illegal. That means the rideshare and delivery companies can continue their practice of using the Lyft, DoorDash, and Uber independent contractor model for operating their businesses.
Proposition 22, voted in by California voters late 2020, exempts rideshare and delivery companies from abiding by AB 5, a state law that classified California gig workers as employees. This would have forced companies to supply insurance and other benefits to independent contractors had they not pushed to get Prop 22 passed. You’ll see a more comprehensive description of Proposition 22 and its impact on drivers in this Gridwise post.
Proposition 22 was challenged by the State, and in August 2021 the California Superior Court ruled it to be unconstitutional. This Gridwise post details that ruling. The rideshare and delivery companies appealed, and this most recent ruling went in favor of the independent driver status.
California Uber law doesn’t apply to all drivers, of course. Nonetheless, what happens with this back and forth between California State lawmakers and the companies gig workers use to earn their living can influence what happens in other states. Many gig workers believe there are positive points to being classified as employees, but just as many drivers have stated that they prefer the flexibility of working as independent contractors.
Fortunately for gig drivers, it’s possible to obtain insurance and benefits through other avenues that cater to the needs of independent contractors. Gridwise offers affordable and comprehensive options for drivers with Gridwise Benefits.
With this new decision from the appeals court, drivers will still be classified as contractors. That could change, should the State and/or the SEIU (Service Employees International Union) take the case to the California Supreme Court and win there. Stay up to date on the latest driver news by checking Gridwise’s blog!