California court rules for Uber, Lyft in ride-hailing case
Automatic TRANSCRIPT
A California court has ruled in favor of a law that allows app based ride hail and delivery companies to treat drivers as independent contractors. A California appeals court has ruled that companies like Uber Lyft and DoorDash do not have to treat their drivers as employees with benefits like paid sick leave bypassing a 2019 state law in a defeat for labor unions and their allies in Sacramento. In 2020, California voters endorsed the exemption by passing ballot proposition 22, which does include some benefits like a guaranteed minimum wage and subsidies for health insurance. Monday's ruling reverses a lower court that had said prop 22 was illegal. Tony West, Uber's chief legal officer, says we're pleased the court respected the will of the people, Mike Robinson, one of the drivers who filed the challenge to prop 22, says it's not a total defeat since the court ruled the company's couldn't stop their drivers from collective bargaining to get better working conditions. I'm Jennifer King