Gig companies on Monday scored a major victory in their battle to continue treating their drivers as independent contractors.
Uber Technologies Inc., Lyft Inc. and DoorDash Inc. on Monday scored a major victory in their battle to continue treating their drivers as independent contractors as an appeals court let most of an embattled California law stand.
A California appeals court overruled a judge’s ruling that Proposition 22, the ballot proposition on which Uber UBER , Lyft LYFT , DoorDash DASH and other gig companies spent more than $200 million and which 58% of the state’s voters approved in 2020, was unconstitutional. The companies, which have fought for years to preserve their business models that rely on not classifying app-based drivers and couriers as employees, were pleased with the outcome.
“We are pleased that the court upheld the democratic will of the voters and the fundamentals of Prop. 22,” said Shadawn Reddick-Smith, a spokesperson for Lyft.
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