00:00A U.S. court has ruled that app-based ride-hailing and delivery companies such as Uber, Lyft, and Postmates
00:06can continue to treat their workers as independent contractors in the state of California.
00:11The California Appeals Court found that a labor measure, known as Proposition 22, was largely constitutional,
00:18overturning a lower court ruling in 2021 that claimed it was illegal.
00:23The ruling is a defeat for labor unions that were looking for companies like Uber and Lyft to be treated
00:28as employees.
00:30And have access to benefits like paid sick leave and unemployment insurance.
00:34Forbes reports the companies, however, will not be able to stop their drivers from joining a labor union
00:40to collectively bargain for better pay and benefits, the court ruled.
00:44Lyft said that the Proposition protects the independent's driver's value and gives them new historic benefits.
00:50The BBC reports shares in Uber and Lyft were almost 5% higher in after-hours trading.
Comments