California Supreme Court to review rulings on constitutionality of Prop 22

The battle over the constitutionality of California’s Prop 22 lives on, with the state’s Supreme Court granting review of mixed lower and appellate court rulings on the issue of exempting gig workers from independent contractor law AB5.

The Supreme Court on Wednesday said it would hear the appeal of the case, which was brought by a group of gig worker defendants. A driver named Hector Castellanos is the lead plaintiff. The Service Employees International Union California State Council is also a...

https://www.freightwaves.com/news/california-supreme-court-to-review-rulings-on-constitutionality-of-prop-22

15 states jump into California’s ongoing AB5 legal battle 

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A cascade of filings in the “other” AB5 case earlier this week includes one from 15 state attorneys...

https://www.freightwaves.com/news/fifteen-states-jump-into-californias-ongoing-ab5-legal-battle

Court revives Uber/Postmates fight against AB5 for app-based drivers

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A lawsuit against AB5 brought by Uber, Postmates and two of their gig drivers failed in a lower...

https://www.freightwaves.com/news/court-revives-uber-postmates-fight-against-ab5-for-app-based-drivers

California’s Prop 22 survives; appellate court reverses lower court finding

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Proposition 22, which kept California’s independent contractor law AB5 from applying to app-based...

https://www.freightwaves.com/news/californias-prop-22-survives-appellate-court-reverses-lower-court-finding

Appellate court hears arguments on constitutionality of California’s Prop 22

An appellate court must sort through several legal interpretations after hearing arguments on whether California should allow Prop 22, the 2020 referendum designed to exempt the state’s gig workers from the AB5 independent contractor classification law. 

Voters approved Prop 22 by a hefty margin on Election Day in 2020. It blocked gig drivers, like those from Uber (NYSE: UBER), Lyft (NASDAQ: LYFT) and DoorDash (NYSE: DASH), from being governed by AB5. But Alameda County Judge Frank Roesch ruled...

Instacart to pay $46.5 million to over 300,000 workers in settlement

Instacart storefront

The same day the Biden administration introduced a proposal to reclassify independent contractors as full-time employees, gig workers earned another big victory.

On Tuesday, Instacart settled a lawsuit with the city of San Diego and agreed to pay out $46.5 million to more than 300,000 current and former workers.

Filed in 2019, the suit alleged that the workers were misclassified as independent contractors. That ultimately held weight under the law with the passage of California’s Assembly Bill 5...

https://www.freightwaves.com/news/instacart-to-pay-465-million-to-over-300000-workers-in-settlement

Modern Shipper Top 10: Last-mile delivery

Modern Shipper launched in February with a mission of highlighting the ever-growing last mile of the supply chain. Throughout the year, we learned a lot, and our readers helped inform us of plenty more.

Looking back on the year that was, there were plenty of stories that resonated with our readers — from drones to automation, from gig workers to last-mile delivery providers. Of course, we can’t forget e-commerce, which is rapidly changing the supply chain and everything and everybody that...

https://www.freightwaves.com/news/modern-shipper-top-10-last-mile-delivery

Proposed EU legislation could give gig workers employee rights

The European Commission is proposing a rule that would mandate that gig workers are employees

As many as 4.1 million gig workers in the European Union edged closer to full employment status on Thursday, when the European Commission, the executive branch of the EU, released draft legislation that would effectively grant them employee rights.

Currently, the burden of proof of employment status in the EU rests on the gig workers themselves, which has forced them to go to court in order to prove that they are employees. But under the law proposed by the commission, that burden would be...

https://www.freightwaves.com/news/proposed-eu-legislation-could-give-gig-workers-employee-rights

Food delivery apps face EU crackdown: Are US companies next?

Companies like Uber, Lyft and DoorDash could feel the heat in the U.S. when EU lawmakers rule on gig worker classification this week

Third-party food delivery companies in Europe aren’t doing so hot. The European Commission, the executive branch of the EU, is scheduled to meet this week to propose what speculators believe will be stricter labor rules to regulate the gig economy in the region.

Specifically, ​​reports suggest that the commission will require gig companies to directly employ their couriers, rather than classify them as independent contractors. On the heels of that news, investors have soured on food delivery...

https://www.freightwaves.com/news/food-delivery-apps-face-eu-crackdown-are-us-companies-next

Stride aims to give every gig worker a portable benefits account

Stride secures $47 million funding raise to build out portable benefits accounts for gig workers and gig drivers

One enduring feature of the gig economy is “multi-apping” — driving or delivering for several platforms. Many gig workers drive not only with Uber, for example, but with Lyft, too.

The problem, though, is that gig workers don’t receive benefits from any of the platforms they work for due to their legal status as independent contractors, which has contributed to a back-and-forth between gig workers and gig companies that has roiled the gig economy for months.

But what if gig workers not only...

https://www.freightwaves.com/news/stride-aims-to-give-every-gig-worker-a-portable-benefits-account

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