California: Court upholds bill that forces Uber to fully employ its workers
The company alleged that the rule violates its rights under the Equal Protection Clause of the state Constitution. Uber wants to keep its workers as contractors.
(Cordon Press)
In California, a federal appeals court dismissed lawsuit filed by Uber challenging a state law that aims to make transportation company workers employees rather than continuing to work as independent contractors:
Uber alleged that the law violates its rights under the Equal Protection Clause of the state Constitution and at the federal level.
The law in California
The state law was passed in 2019 with the intention of making workers at companies such as Uber, Lyft and Postmates employees with an established minimum wage. The standard indicates that these companies have "a systemic problem" since they "misclassify drivers using their ride-hailing platforms as independent contractors rather than employees, depriving them of benefits to which employees are entitled."
At the time, the law was challenged by Uber and overturned after years of deliberation.
A 2020 state vote called Prop 22 opposed the rule and determined that companies like Uber can classify their employees as contractors. This measure is also being challenged in court by a union. When this last verdict is given, it will be known what will happen to the contracts of workers at companies like Uber.
An Uber spokesperson told The Hill that the new decision "will not directly affect its relationship with its drivers because of Prop 22."
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