California court rules Uber and Lyft have right to treat their drivers as independent contractors

　　China News Agency, San Francisco, March 13 (Xinhua) -- An appeals court in California overturned a lower court's ruling on the 13th local time and found that ride-hailing companies Uber and Lyft have the right to treat their drivers as independent contractors.

　　In recent years, various parties in California have been locked in a tug-of-war over whether ride-hailing companies should treat their drivers as employees or independent contractors.

In August 2020, a judge in the state ruled that Uber and Lyft must identify their drivers as employees rather than independent contractors.

As regular employees, drivers can enjoy company benefits and have the right to organize trade unions.

　　According to the US Consumer News and Business Channel, in November 2020, voters voted to approve California Proposition 22, allowing ride-hailing and delivery service companies such as Uber and Lyft to classify their drivers as independent contractors.

Companies including Uber, Lyft, DoorDash and Instacart spent nearly $200 million on votes to get the proposal passed.

The WSJ reported that the companies promised their drivers some flexibility and "alternative benefits" if the proposal goes through.

In the end, the proposal passed with 58.6% support.

　　According to the report, California Proposition 22 exempts companies such as Uber and Lyft from complying with obligations such as minimum wages, overtime pay and compensation for employees.

These companies can provide compensation and benefits based on the hours a driver works.

Some drivers tried to overturn California's Proposition 22, and it was upheld by lower courts.

In 2021, a California judge ruled the proposal unconstitutional.

　　Proposition 22 parties then appealed the lower court's decision.

On March 13, the California 1st District Court of Appeals overturned a lower court ruling in favor of companies such as Uber and Lyft that treat drivers as independent contractors in California.

　　Uber's chief legal officer, Tony West, said on the 13th that California's Proposition 22 reserved "unique flexibility" for app-based working methods. Victory for Millions of Californians.

But in the view of Lorena Gonzalez Fletcher, a leader of the Cal Labor Federation and a former state congressman, the appeals court is allowing businesses to spend money to escape the grip of California law.

"Today, the Court of Appeals has chosen to side with powerful corporations rather than working people," she said.

　　The Associated Press reported that the ruling on the 13th may not be the final result, and relevant parties still have the opportunity to appeal to the California Supreme Court.

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