[California] Court orders Uber and Lyft to classify drivers as employees

Following an appeal process, the California Court of Appeal has ordered ridesharing organisations Lyft and Uber to classify their drivers as employees. The court’s ruling stated that the misclassification caused harm to drivers who, as independent contractors, do not receive employee benefits. The ruling - voted unanimously by the court - reportedly came about after California’s introduction of a law aimed at reclassifying the contract structure of all ride-hail and food delivery organisations, to support employees with insurance and a minimum wage. (Link via original reporting)

The ongoing case - originally filed on May 5, 2020, by the attorney general of California on behalf of the people of the state of California - ruled that Uber and Lyft must pay all drivers the minimum wage, unemployment insurance, employee compensation, sick leave and family leave. Both organisations appealed the decision and were passed on to The California Court of Appeal. The most recent conclusion will mean that voters in California will decide whether this takes effect within 30 days of the judgement. Employee Benefits reports on the decision, with reactions from both sides.

Following an appeal process, the California Court of Appeal has ordered ridesharing organisations Lyft and Uber to classify their drivers as employees. The court’s ruling stated that the misclassification caused harm to drivers who, as independent contractors, do not receive employee benefits. The ruling - voted unanimously by the court - reportedly came about after California’s introduction of a law aimed at reclassifying the contract structure of all ride-hail and food delivery organisations, to support employees with insurance and a minimum wage. (Link via original reporting)

The ongoing case - originally filed on May 5, 2020, by the attorney general of California on behalf of the people of the state of California - ruled that Uber and Lyft must pay all drivers the minimum wage, unemployment insurance, employee compensation, sick leave and family leave. Both organisations appealed the decision and were passed on to The California Court of Appeal. The most recent conclusion will mean that voters in California will decide whether this takes effect within 30 days of the judgement. Employee Benefits reports on the decision, with reactions from both sides.