AIRLINK 204.45 Increased By ▲ 3.55 (1.77%)
BOP 10.09 Decreased By ▼ -0.06 (-0.59%)
CNERGY 6.91 Increased By ▲ 0.03 (0.44%)
FCCL 34.83 Increased By ▲ 0.74 (2.17%)
FFL 17.21 Increased By ▲ 0.23 (1.35%)
FLYNG 24.52 Increased By ▲ 0.48 (2%)
HUBC 137.40 Increased By ▲ 5.70 (4.33%)
HUMNL 13.82 Increased By ▲ 0.06 (0.44%)
KEL 4.91 Increased By ▲ 0.10 (2.08%)
KOSM 6.70 No Change ▼ 0.00 (0%)
MLCF 44.31 Increased By ▲ 0.98 (2.26%)
OGDC 221.91 Increased By ▲ 3.16 (1.44%)
PACE 7.09 Increased By ▲ 0.11 (1.58%)
PAEL 42.97 Increased By ▲ 1.43 (3.44%)
PIAHCLA 17.08 Increased By ▲ 0.01 (0.06%)
PIBTL 8.59 Decreased By ▼ -0.06 (-0.69%)
POWER 9.02 Decreased By ▼ -0.09 (-0.99%)
PPL 190.60 Increased By ▲ 3.48 (1.86%)
PRL 43.04 Increased By ▲ 0.98 (2.33%)
PTC 25.04 Increased By ▲ 0.05 (0.2%)
SEARL 106.41 Increased By ▲ 6.11 (6.09%)
SILK 1.02 Increased By ▲ 0.01 (0.99%)
SSGC 42.91 Increased By ▲ 0.58 (1.37%)
SYM 18.31 Increased By ▲ 0.33 (1.84%)
TELE 9.14 Increased By ▲ 0.03 (0.33%)
TPLP 13.11 Increased By ▲ 0.18 (1.39%)
TRG 68.13 Decreased By ▼ -0.22 (-0.32%)
WAVESAPP 10.24 Decreased By ▼ -0.05 (-0.49%)
WTL 1.87 Increased By ▲ 0.01 (0.54%)
YOUW 4.09 Decreased By ▼ -0.04 (-0.97%)
BR100 12,137 Increased By 188.4 (1.58%)
BR30 37,146 Increased By 778.3 (2.14%)
KSE100 115,272 Increased By 1435.3 (1.26%)
KSE30 36,311 Increased By 549.3 (1.54%)

SAN FRANCISCO: A California judge has ruled unconstitutional a 2020 referendum passed by the state's voters that lets "gig workers" be treated as contractors, in a decision revealed Friday.

Labor legislation known as Proposition 22 - heavily backed by Uber, Lyft and other app-based, on-demand services - effectively overturned a California law requiring them to reclassify their drivers and provide employee benefits.

Uber attacked the decision and pledged to challenge it.

"This ruling ignores the will of the overwhelming majority of California voters and defies both logic and the law," the ride-hailing service said in a statement.

"Meanwhile, Prop. 22 remains in effect, including all of the protections and benefits it provides independent workers across the state," it added.

The November vote came after a contentious campaign with labor groups claiming the initiative would erode worker rights and benefits, and with backers arguing for a new, flexible economic model.

The victory for the "gig economy" in California was expected to echo across the US, in a boon for app-based services while igniting fears that big business is rewriting labor laws.

Under the proposition, drivers remained independent contractors but Uber and Lyft were to pay them a number of benefits including a minimum wage, a contribution to health care and other forms of insurance.

Critics of the measure said it failed to take into account the full costs borne by drivers.

Uber and Lyft claimed most drivers support the contractor model.

But the firms had been sued by the state, which argued keeping that model violated California labor law. A Proposition 22 victory rendered the court case effectively moot.

Comments

Comments are closed.