An appeals court in California has overturned a decision to invalidate a referendum on employment at ride-hailing giants Uber and Lyft. The dispute over “Proposition 22” centers on a law that aims to give drivers and delivery drivers the status of employees and associated social benefits. The Court of Appeals ruled that the referendum held in November 2020 was legally correct, differing from the Alameda County District Judge Frank Roesch, who had ruled that an unlawful section of the referendum nullified the entire decision. This long dispute could see a decision made by the Supreme Court of California.
In 2018, the California State Supreme Court outlined criteria for distinguishing between self-employed individuals and employees. It stated that someone who works under the employer’s control and does not run an independent business of the same kind is employed. However, this law did not apply to chauffeurs and ride brokers like Uber and Lyft. In a vote on “Proposition 22,” Californians voted for an exception also to apply to these ride-hailing giants.
The ruling has been met with criticism from unions, who claim that corporations are influencing democracy and buying legislation. Uber claims it is a “victory for app-based workers,” while others have called it a victory for oligarchs. Uber, Lyft, and other industry players spent nearly $200 million on advertising campaigns for Proposition 22, making it the most expensive campaign in US history.
