Trucking news and briefs for Friday, March 17, 2023:
A California state appeals court on Monday upheld a ballot measure allowing apps like Uber and Lyft to treat their drivers as independent contractors, rather than employees.
The court found the ballot measure, known as Proposition 22, actually was constitutional, but did strike down a part of the proposition that limited gig workers' ability to organize and join unions. Uber and Lyft celebrated the victory in court, and their stock prices shot up a few points each on the news.
California voters backed Prop 22 in November 2020 when it won nearly 60% of votes in California. Prop 22 exempted app-based drivers from AB 5, meaning they could continue to work as independent contractors.
Meanwhile, the California Trucking Association still seeks an injunction against AB 5 in the lower courts, and the appeals court's recent ruling has no bearing or benefit for the trucking industry. California's deadline to respond to the challenge has been extended to March 29.
[Related: Trucking sounds off on DOL nominee over AB 5 role]
