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Uber, Lyft score California Prop 22 victory in blow to labor – Source

Last night, Californians decided that gig economy workers, such as Uber drivers and Postmates deliverers, should be classified as contractors, not employees. It was a tough blow to labor rights groups who have been fighting to get gig workers who work more than 30 hours a week employee benefits such as healthcare and paid time off. Optimists will say Prop 22 still has room to provide some benefits to a lot more workers, even if they’re not full employees.

“I would say that this is a good development because for a long time, we have needed some sort of legislative framework to fund benefits for people who are not full-time employees,” says Arun Sundarajan, professor at New York University’s Stern business school, who has written about the gig economy.

Prop 22 paves a new way for companies to offer benefits to gig workers. The rule introduces a wage floor and requires companies to contribute subsidies for health benefits, occupational accident insurance, vehicle expenses, and…

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