The California Supreme Court has upheld Proposition 22, classifying app-based gig workers as independent contractors. This decision not only preserves the business model of these companies but also allows gig workers to maintain their work independence.
Proposition 22 is an important ballot measure passed in California in 2020. It classified gig workers as independent contractors, helping companies like Uber, Lyft, DoorDash and Instacart to maintain their way of operating.
Uber and Lyft have praised this decision. Uber said in a blog post, "Drivers or couriers can maintain the freedom to work on their own terms." At the same time, Lyft reported in its post that more than 80% of California drivers voted in support of Proposition 22.
However, this decision has also been criticized. Critics say it deprives gig workers of minimum protections and benefits. "Drivers are paid less than half of what Uber and Lyft charge passengers," said ride-share driver Alejandro Partida.
This model of the gig economy is spreading across the country. States like New York, Minnesota and Massachusetts also create new pay standards for gig workers. However, companies say higher pay will affect the end consumer.
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