California court upholds Prop 22 in win for Uber, Lyft, DoorDash
TechCrunchAPR 2023
This is a crucial victory for companies that rely on independent-contractor drivers for the survival of their business. The independent-contractor model saves companies from having to pay costly benefits, and in return, drivers get some benefits in addition to the flexibility that’s proven immensely popular since Prop 22 took effect.
Gig companies shouldn’t celebrate just yet. The Service Employees International Union intends to appeal in an effort to make sure drivers are afforded the rights of all other workers in the state. In addition, the US Federal Trade Commission is looking into accusations of wage-fixing, and the Department of Labor is considering a federal law to classify more contractors as employees.