A California appeals court ruling on Thursday avoided a shutdown of ride-hailing services Uber and Lyft in the state, effectively handing a decision over gig worker benefits and pay to voters in a November ballot measure.
Uber and Lyft say the vast majority of their drivers do not want to be employees, with some 80% working less than 20 hours per week. The companies say their flexible on-demand business model is not compatible with traditional employment law and advocate for what they call a “third way” between employment and contractor status.
Under the “third way” proposal outlined in the ballot measure, drivers would receive a health care stipend, a minimum wage, expense reimbursements as well as medical and disability coverage for injuries on the job. Labor groups reject the companies’ claims that current employment laws are not compatible with flexible work schedules and argue the companies should play by the same rules as other businesses.
Read the article at Reuters.
