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The California appeals court found that a labour measure, known as Proposition 22, was largely constitutional.
Labour groups and some workers had opposed the measure, saying it robbed them of rights like sick leave.
The firms say the proposition protects other benefits such as flexibility.
The latest ruling overturns a decision made by a lower court in California in 2021, which found that Proposition 22 affected lawmakers' powers to set standards at the workplace.
The state of California and a group representing Uber, Lyft and other firms appealed against the decision.
On Monday, a three-judge panel at the appeals court ruled that workers could be treated as independent contractors. However it removed a clause, which put restrictions on collective bargaining by workers, from Proposition 22.
Shares in Uber and Lyft were almost 5% higher in after-hours trading.
"Today's ruling is a victory for app-based workers and millions of Californians who voted for Prop 22," Tony West, chief legal officer at Uber said.
[...] Tens of millions of people work in the global gig economy across services like food delivery and transport.
Gig workers are paid for individual tasks, such as a food delivery or a car journey, rather than getting a regular wage.
Most US federal and state labour laws, such as those requiring a minimum wage or overtime pay, do not apply to gig workers.
Previously:
NYC Court Blocks Pay Raise for Uber and Lyft Drivers
Uber, Lyft Drivers In California To Remain Independent Contractors
California Appeals Court Says Uber, Lyft Drivers are Employees, Not Contractors
California Judge Rules Uber and Lyft to Immediately Classify Drivers as Employees
California Sues Uber and Lyft, Alleging Drivers are Misclassified
Uber, Lyft Poised to Lose Fight Against California Bill That Would Label Drivers as Employees
(Score: 3, Insightful) by Anonymous Coward on Thursday March 16 2023, @02:14AM (2 children)
I was a contract driver before people were even on AOL, let alone using apps. I did delivery for a local courier company. Just like Uber/Lyft, we were quasi-independent and there were downsides but there was an upside: You paid almost no tax if you took the mileage deduction, and if you were honest and paid for it you got quarters for Social Security.
A lot of shady people and even illegal immigrants are attracted to that business though, and even people who will just flat out not pay their taxes. It won't hurt you much if you do it for very long, but not paying in for benefits can really bite you in the ass.
Years later I met a dude in his 40s who had NO QUARTERS FOR SOCIAL SECURITY because of this whole "working outside the system" thing. He might still be able to make up some of that, as I think they only take the top N for calculating benefits. I forget what N is, It's still at least 10 years away for me to care.
Sucky jobs in general. Huge motivation to get back to school. If you can find a way out, do; but if you can't, for the love of god pay that SE tax. I know people who are collecting benefits now who used to say, "I'll never get SSI".
(Score: 0) by Anonymous Coward on Thursday March 16 2023, @03:23AM
Yeah. Only the good die young, and all that. Apparently, I wasn't one of the good ones.
(Score: 1) by khallow on Thursday March 16 2023, @05:22AM
So what? It goes down and there's fewer and fewer people supporting those Social Security payouts every year.
Or put it into a real investment.
(Score: 3, Informative) by Runaway1956 on Thursday March 16 2023, @03:32AM
And how does that affect the truck driving industry in California? The rulings against the gig workers were supposed to apply directly to truck drivers. https://www.mercurynews.com/2022/07/08/california-throws-70000-truckers-in-gig-work-legal-limbo-risking-supply-chains/ [mercurynews.com]
https://apnews.com/article/california-courts-economy-business-government-and-politics-332e244b793604ba65946a3f3b99e271 [apnews.com]
(Score: 2, Interesting) by Anonymous Coward on Thursday March 16 2023, @10:39AM (2 children)
Every time I’ve taken an Uber or Lyft, the driver has two smartphones, and they were talking rides from both at the same time. I’ve never heard of an employee who could legitimately do work from some other job while on the clock for his first job. It seems to me that exclusivity is a prerequisite for being an employer.
I suppose you could consider it an employee situation if they “punched in” only while they were actually driving a customer, but that would make them very part-time workers who wouldn’t be eligible for benefits anyway.
(Score: 0) by Anonymous Coward on Thursday March 16 2023, @09:06PM
Nobody has ever worked a side hustle at work before Lyft, nope. Never happened.
Uber and lyft are not employers in the same way that SN isn't a social media website. I can't begin to correctly insult your intelligence in the limited space provided.
So instead, some free advice: take a good look at how much you've internalized the "temporarily embarassed millionaire" nonsense.
(Score: 2, Interesting) by Runaway1956 on Friday March 17 2023, @01:09AM
Part time jobs. Hell, I worked a part time job for some months while in the Navy. I asked for, and got permission to do so from my commanding officer. The part time job had some limited benefits. Very limited for part timers, but if there were an accident on the job, it wouldn't leave Uncle Sam on the hook for injuries to an active duty serviceman.
Neither Uber nor Lyft can make any claims to full time employment, so exclusivity goes out the window.