CA Supreme Court Late Wed. Agreed To Hear Prop. 22 Appeal
Portfolio Pulse from Benzinga Newsdesk
The California Supreme Court has agreed to hear an appeal on Proposition 22, a ruling that previously favored ride-hailing companies Uber and Lyft by classifying their drivers as contractors rather than employees.
June 29, 2023 | 1:34 pm
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NEGATIVE IMPACT
Lyft's operations could be affected by the appeal on Proposition 22, as it also classifies its drivers as contractors.
If Proposition 22 is overturned, Lyft may have to reclassify its drivers as employees, potentially leading to increased operating costs and impacting profitability.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The appeal on Proposition 22 could potentially impact Uber's business model, which is based on classifying drivers as contractors.
If the appeal overturns Proposition 22, Uber may be required to classify drivers as employees, which could increase their operating costs and affect their profitability.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80