The California Supreme Court ruled in favor of ride-hailing and delivery services like Uber and Lyft, allowing them to continue treating drivers as independent contractors instead of employees, ending a long legal battle between labor unions and tech companies.
This decision upholds a voter-approved law from 2020, affirming that drivers for companies like Uber and Lyft are independent contractors and are not entitled to benefits like overtime pay, paid sick leave and unemployment insurance.
The big picture: The ruling is a significant win for tech companies, with Uber describing it as a victory for drivers and a defense of their freedom to work when and how they want.
- Labor unions and their allies, who fought for more rights for drivers, expressed disappointment and vowed to continue fighting for job protections and benefits, highlighting the impact on workers and the need for union rights.
- The legal battle stemmed from a 2019 law aimed at mandating companies like Uber and Lyft to provide drivers with protections like minimum wage, overtime, and health insurance, which had a substantial impact on app-based ride-hailing and delivery companies.
