The legal clash between California officials and Lyft, Uber: Could it shape the future of rideshare companies?
With the ongoing legal clash between California officials and rideshare leaders Uber and Lyft over the classification of their workers, many are left wondering whether these companies will reclassify their workers or leave the state. Will Swaim, the President of the California Policy Center, discusses the latest on what is happening with Uber and Lyft in California.
California Proposition 22, which would exempt gig workers from state labor laws, has yielded a slew of lawsuits and advertisements, making it one of the costliest ballot initiatives in the state’s history.
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In the lead-up to Election Day, gig companies have outspent labor groups by about $200 million to $19 million, according to an analysis by CalMatters. Should Prop. 22 fail, gig companies would be compelled to reclassify and pay contract workers like employees. Treating them as such would guarantee benefits such as overtime, sick leave, and expense reimbursement for workers who make up much of the gig economy.