Uber, Lyft Shares Jump as Calif Court Rules in Favor of Classifying Drivers as Contractors
March 13 2023 - 8:31PM
Dow Jones News
By Sabela Ojea
Shares of Uber Technologies Inc. and Lyft Inc. on Monday rose
4.4% and 5.2% respectively in after-hours trading Monday after a
California appeals court ruled in favor of the companies' right to
treat drivers as contractors.
The ride-hailing companies state victory reverses a prior ruling
that classified as unconstitutional the treatment of drivers as
independent contractors.
It also upholds the state's Proposition 22, which preserves the
so-called gig-economy business model.
Uber and Lyft are in a conflict with regulators over whether and
how to grant more benefits such as paid sick leave and health
insurance to workers in the gig economy, where apps distribute
individual tasks to a pool of people whom companies generally
regard as independent contractors.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
March 13, 2023 20:16 ET (00:16 GMT)
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