Setback for Uber, Lyft as California judge declares gig worker initiative unconstitutional

A judge in California has declared unconstitutional a referendum moved by the California voters which exempted ride-hailing platforms like Uber, Lyft from adhering to a state law requiring drivers to be classified as employees to enjoy job protection benefits.

Alameda county superior court Judge Frank Roesch ruled that Proposition 22, a ballot measure approved in November last year, "infringes on the power of the legislature explicitly granted by the state constitution to regulate compensation for workers'injuries."

The voters had approved the measure Uber,Lyft and other services spent nearly $200m in its favour, making it the most expensive ballot measure in state history, reported the Guardian.

Meanwhile, Uber has expressed displeasure over the order and said it would challenge the judgement.

"This ruling ignores the will of the overwhelming majority of California voters and defies both logic and the law. You don't have to take our word for it: California's attorney general strongly defended Proposition 22's constitutionality in this very case,"the company’s spokesman Noah Edwardsen was quoted as saying by the Guardian.

He said the measure will remain in force pending the appeal.

Proposition 22 shielded the app-based ride-hailing firms from a labour law that required such services to treat drivers as employees and not independent contractors or "gig workers", who don’t enjoy benefits such as paid sick leave or unemployment insurance.

Uber and Lyft threatened to leave the state if voters rejected the measure.