© Reuters. FILE PHOTO: Application-based concert workers hold a rally in front of Los Angeles City Council to urge voters to vote no to Proposition 22, a November voting measure that would classify application-based drivers as independent contractors and not as employees or agents, in Los Angeles, California, USA, October 8, 2020. REUTERS / Mike Blake
(Reuters) – A California judge ruled on Friday that a 2020 voting measure exempting drivers involved in car-sharing and food deliveries from a state labor law is unconstitutional as it violates the legislature’s power to set rules in the workplace.
Proposition 22 is unconstitutional, as it “limits the power of a future legislature to define application-based drivers as workers subject to the Workers’ Compensation Act,” making the entire voting measure “inapplicable.” , wrote Alameda County Superior Court Judge Frank Roesch in the decision.
Big economy companies, including Uber (NYSE :), Lift (NASDAQ :), Doordash and Instacart were pushing to maintain contractor status independent of drivers, albeit with additional benefits.
The voting measure wanted to consolidate application-based food delivery and the status of drivers as independent contractors and not as employees.
Known as Proposition 22, it marked the culmination of years of legal and legislative disputes over a business model that has introduced millions of people to the convenience of ordering food or walking at the push of a button.
Fusion Media or anyone related to Fusion Media will not be liable for any loss or damage resulting from reliance on the information, including data, estimates, charts and buy / sell signals contained on this website. Be fully aware of the risks and costs associated with financial market trading, as it is one of the riskiest forms of investment possible.
Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.