Uber, Lyft and other ride-share and gig economy companies were dealt a major blow, with a judge ruling Prop. 22 is “unconstitutional.”
Prop. 22 allows ride-share and gig economy companies to classify their workers as independent contractors, meaning the companies are not required to provide health insurance or benefits. The law’s passage was a major win for the companies, as California law was on the verge of classifying them as employees.
Superior Court judge in Alameda County, Judge Frank Roesch, has now put Prop. 22’s future in doubt, calling the law “unconstitutional,” according to Mashable. He said “it limits the power of a future legislature to define app-based drivers as workers subject to workers’ compensation law.”
Needless to say, Uber and Lyft will appeal the decision, meaning nothing will change immediately. However, Judge Roesch’s ruling is certainly cause for worry for the impacted companies, and good news for their “contractors.”