Party Economy Updates
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Shares of big economic groups rebounded again on Monday after the likes of Uber expressed confidence that it would prevail in overturning a California judge’s ruling that Recently passed legislation Industry support was “unconstitutional”.
On Friday, a Supreme Court judge in Alameda County, which neighbors San Francisco and includes the city of Oakland, said Proposition 22, which allows temporary job workers to remain as so-called independent contractors, was “unenforceable” under state law. The judge said the ruling would not go into effect while Uber and others, including the California attorney general, are filing an appeal.
Stock prices in big players like Uber and Lyft plummeted in the immediate aftermath of the decision. However, reassurances from companies that the ruling will not have any immediate impact on him drivers, Confidence that the decision would be overturned on appeal, they seemed to calm investors by Monday morning.
Shares of Uber, Lyft and DoorDash mostly flattened by midday, with Uber recovering more strongly to trade more than 2 percent. Analysts reiterated Uber’s “buy” ratings.
Uber said in a statement that the ruling “disregards the will of the overwhelming majority of California voters and defies common sense and the law.”
She added, “We will appeal and expect to win. Meanwhile, Offer 22 remains valid, including all the protections and benefits it provides to freelance workers across the country.”
A spokesperson for food delivery app DoorDash said: “This ruling is not only wrong, but a direct attack on Dashers’ independence. It won’t hold up.”
Brad Erickson, of RBC Capital Markets, wrote in a note: “We remain fairly certain that in this regard, lawmakers in California and Washington, DC, do not ultimately want to put in place laws that put people out of work while also negatively affecting the consumer; so we remain We are optimistic that such policies are unlikely to be enforced.”
Proposition 22 went into effect in January after winning the support of 59 percent of California voters. It has been the subject of an intense campaign by the temporary jobs economy industry, which has collectively spent more than $220 million on the effort — the most expensive campaign for a ballot in the state’s history.
exempt gig economy Companies are required to comply with state law requiring them to grant workers full employment rights. Instead, it offered a limited set of benefits, such as a healthcare stipend. Proposition 22 has been announced by industry as a model for regulation in other parts of the country. A similar ballot measure is now being pushed in Massachusetts.
Alameda County Superior Court Judge Frank Roach said the provisions in Proposition 22 are “unconstitutional because they limit the power of the future legislature to define application-based drivers as workers subject to the Workers’ Compensation Act,” drawing attention to a requirement that lawmakers reach a majority of seven hundred in order to make any modifications.
As such, the judge wrote: “The Court found Proposition 22 in its entirety to be unenforceable.”
The case was brought by three drivers supported by the Service Personnel International Federation. Two years ago, drivers were saying that democracy cannot be bought. “Today’s decision shows they were right,” said Bob Schonover, chair of the California State Council at SEIU.