According to a US court decision, major players in the “gig” economy like Uber and Lyft may continue to classify their employees like independent contractors in the state of California.
Proposition 22, a labor initiative, was declared to be constitutional by the California Court of Appeal.
The bill was challenged by labor organizations and some workers who claimed it violated their rights to benefits like sick leave.
According to the businesses, the proposal safeguards other benefits like flexibility.
The most recent verdict overturns a judgment rendered by a lower court in California in 2021, which determined that Proposition 22 had an impact on the authority of lawmakers to establish workplace rules.
The ruling was appealed by the state of California as well as a coalition that included Uber, Lyft, and other businesses.
