Court Victory Offers Uplift

Court Victory Offers Uplift

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  • Shares of Uber (UBER) and Lyft (LYFT) are soaring Tuesday following a California appeals court ruling that drivers at the ride-hailing companies should remain classified as independent contractors. While this is a victory for the companies, the controversy over their workers' employment status is sure to continue on a national level.
  • The California court also decreed that companies must not hinder the capacity of their drivers to join a labor union and bargain collectively. This decision is likely to bring about a rise in labor disputes, as Californian gig workers organized the California Gig Workers Union last year.

Why it matters

An appeals court ruled on Monday to largely uphold the victory of ride-hailing companies in California after they won a state ballot in 2020 granting them an exemption from a law designed to make them treat workers as employees. Nonetheless, the decision could be taken to the California Supreme Court, potentially prolonging the fight concerning gig-workers' status in the state.


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