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The California Supreme Court ruled Thursday that app-based ride-hailing and delivery services like Uber and Lyft can continue treating their drivers as independent contractors rather than employees.

The unanimous decision by the state’s top court is a big win for tech giants. It also ends a yearslong legal battle between labor unions and tech companies over a law dictating the status of app-based service workers in the state.

The ruling upholds a voter-approved law passed in 2020 that said drivers for companies like Uber and Lyft are independent contractors and are not entitled to benefits like overtime pay, paid sick leave and unemployment insurance. Opponents said the law was illegal in part because it limited the state Legislature’s authority to change the law or pass laws about workers’ compensation programs.

A lower court ruling in 2021 had said the measure was illegal, but an appeals court reversed that decision last year. The California Supreme Court’s decision means companies like Uber and Lyft can continue their operations as before.

Uber called the ruling “a victory” for drivers. Companies like Uber, Lyft and DoorDash spent $200 million on a campaign in 2020 to help the law pass.

“Whether drivers or couriers choose to earn just a few hours a week or more, their freedom to work when and how they want is now firmly etched into California law, putting an end to misguided attempts to force them into an employment model that they overwhelmingly do not want,” the company said in a statement Thursday.

The ruling is a defeat for labor unions and their allies in the Legislature who fought to secure more rights for drivers.

“What’s going on is not just. It’s not what California is about,” said Nicole Moore, president of Los Angeles-based Rideshare Drivers United. “It’s a sad day for workers.”

Labor unions vowed to continue fighting for drivers’ job protections and benefits, noting that an earlier ruling in the appeal process had opened doors for the Legislature to pass laws to allow drivers to join a union.

“We are committed to fiercely backing workers across our economy who have been written out and left behind and helping them knock down big obstacles to winning their union rights,” Service Employees International Union President April Verrett said in a statement.

Lawmakers in 2019 passed a law aimed directly at Uber and Lyft, mandating they provide drivers with protections like minimum wage, overtime, health insurance and reimbursement for expenses. It changed the rules in California of who is an employee and who is an independent contractor.

While the law applied to lots of industries, it had the biggest impact on app-based ride-hailing and delivery companies. Their business relies on contracting with people to use their own cars. Under the 2019 law, companies would have to treat those drivers as employees and provide certain benefits that would greatly increase the businesses’ expenses.

In November 2020, voters approved a ballot proposition to exempt app-based ride-hailing and delivery companies from the law. The proposition included “alternative benefits” for drivers, including a guaranteed minimum wage and subsidies for health insurance if they average at least 25 hours of work a week.

Labor groups and drivers across the nation are pushing for more job protections, higher wages and increased benefits. Drivers in Massachusetts are rallying behind what they describe as a first-of-its-kind ballot question that could win them union rights if approved.


The Supreme Court on Thursday made it harder for the federal government to win court orders when it suspects a company of interfering in unionization campaigns in a case that stemmed from a labor dispute with Starbucks.

The justices tightened the standards for when a federal court should issue an order to protect the jobs of workers during a union organizing campaign.

The court unanimously rejected a rule that some courts had applied to orders sought by the National Labor Relations Board in favor of a higher threshold, sought by Starbucks, that must be met in most other fights over court orders, or injunctions.

The NLRB had argued that the National Labor Relations Act, the law that governs the agency, has for more than 75 years allowed courts to grant temporary injunctions if they find requests “just and proper.” The agency said the law doesn’t require it to prove other factors and was intended to limit the role of the courts.

Following the decision, Starbucks said, “Consistent federal standards are important in ensuring that employees know their rights and consistent labor practices are upheld no matter where in the country they work and live.”

But Lynne Fox, president of the union representing the workers, said Starbucks should have dropped the case as part of its more conciliatory attitude toward union organizing efforts. “Working people have so few tools to protect and defend themselves when their employers break the law. That makes today’s ruling by the Supreme Court particularly egregious,” said Fox, president of Workers United.

The case began in February 2022, when Starbucks fired seven workers who were trying to unionize their Tennessee store. The NLRB obtained a court order forcing the company to rehire the workers while the case wound its way through the agency’s administrative proceedings. Such proceedings can take up to two years.

A district court judge agreed with the NLRB and issued a temporary injunction ordering Starbucks to rehire the workers in August 2022. After the 6th U.S. Circuit Court of Appeals upheld that ruling, Starbucks appealed to the Supreme Court.

Five of the seven workers are still employed at the Memphis store, while the other two remain involved with the organizing effort, according to Workers United, the union organizing Starbucks workers. The Memphis store voted to unionize in June 2022.

As as the case proceeded, animosity between Workers United and Starbucks began to fade. The two sides announced in February that they would restart talks with the aim of reaching contract agreements this year, and they held their first bargaining session in nearly a year in late April.

Workers at 437 company-owned U.S. Starbucks stores have voted to unionize since late 2021, according to the NLRB, but none of those stores has secured a labor agreement with Starbucks.

Starbucks said it’s pursuing its goal reaching ratified contracts for those stores this year.


A new law in California will raise the minimum wage for fast food workers to $20 per hour next year, an acknowledgment from the state’s Democratic leaders that most of the often overlooked workforce are the primary earners for their low-income households.

When it takes effect on April 1, fast food workers in California will have the highest guaranteed base salary in the industry. The state’s minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.

Democratic Gov. Gavin Newsom signed the law Thursday amid a throng of cheering workers and labor leaders at an event in Los Angeles. Newsom dismissed the popular view that fast food jobs are meant for teenagers to have their first experience in the workforce.

“That’s a romanticized version of a world that doesn’t exist,” Newsom said. “We have the opportunity to reward that contribution, reward that sacrifice and stabilize an industry.”

Newsom’s signature reflects the power and influence of labor unions in the nation’s most populous state, which have worked to organize fast food workers in an attempt to improve their wages and working conditions.

It also settles — for now, at least — a fight between labor and business groups over how to regulate the industry. In exchange for higher pay, labor unions have dropped their attempt to make fast food corporations liable for the misdeeds of their independent franchise operators in California, an action that could have upended the business model on which the industry is based. The industry, meanwhile, has agreed to pull a referendum related to worker wages off the 2024 ballot.

“That was a tectonic plate that had to be moved,” Newsom said, referring to what he said were the more than 100 hours of negotiations it took to reach an agreement on the bills in the final weeks of the state legislative session.

Mary Kay Henry, president of the Service Employees International Union International, said the law capped 10 years of work — including 450 strikes across the state in the past two years.

The moment was almost too much for Anneisha Williams, who held back tears as she spoke during a news conference just before Newsom signed the bill. Williams, a mother of six — seven if you count her beloved dog — works at a Jack in the Box restaurant in Inglewood.


The union representing screenwriters reached a tentative agreement with Hollywood studios to end a historic strike after nearly five months, raising hopes that a crippling shutdown of movie and television filming could be near an end.

Actors remain on strike, but the deal with writers might help them find a resolution soon as well.

The Writers Guild of America announced the deal Sunday in a joint statement with the Alliance of Motion Picture and Television Producers, the group that represents studios, streaming services and production companies in negotiations. The agreement must be approved by the guild’s board and members before the strike officially ends. That could happen this week.

The pact “was made possible by the enduring solidarity of WGA members and extraordinary support of our union siblings who joined us on the picket lines for over 146 days,” the guild said in an email to members.

In a longer message from the guild shared by members on social media, the writers were told the strike is not over and no one was to return to work until hearing otherwise, but picketing was to be suspended immediately.

The three-year contract agreement emerged after five marathon days of renewed talks by WGA and AMPTP negotiators, who were joined at times by studio executives. The terms were not immediately announced. The deal to end the last writers strike, in 2008, was approved by more than 90% of union members.

Media and entertainment companies got a small boost from the news. Shares in Warner Bros. Discovery, Paramount, Disney and Netflix all rose about 2% or less on Monday.


The U.S. Department of Justice on Thursday sued SpaceX, the rocket company founded and run by Elon Musk, for alleged hiring discrimination against refugees and people granted asylum.

The complaint, filed in an administrative court within the department, asserts that SpaceX wrongly claimed that federal export control laws barred it from hiring anyone but U.S. citizens and permanent residents. As a result, it discouraged refugees and asylum grantees from applying for jobs at the company, according to the complaint.

Export controls typically aim to protect U.S. national security and to further national trade objectives. They bar the shipment of specific technologies, weapons, information and software to specific non-U.S. nations and also limit the sharing or release of such items and information to “U.S. persons.” But the Justice Department noted that the term includes not only U.S. citizens, but also permanent U.S. residents, refugees, and those granted asylum.

The department charged that SpaceX also refused to “fairly” consider applications from this group of people or to hire them. The positions in question included both ones requiring advanced degrees and others such as welders, cooks and crane operators at the company.

The U.S. is seeking “fair consideration and back pay” for people who were deterred from or denied employment at SpaceX due to the company’s alleged discrimination, in addition to undetermined civil penalties.

SpaceX, which is based in Hawthorne, California, did not reply to a request for comment.


Just two reporters were allowed inside a Georgia courtroom to serve as the eyes and ears of the public when jury selection began for the men charged with murdering Ahmaud Arbery. Pandemic restrictions also kept reporters and the public out of the courtroom during the sex-trafficking trial of music star R. Kelly.

And in an Ohio courtroom, a federal judge relegated the press to an overflow room to listen to an audio feed for the trial of a Chinese national charged with trying to steal trade secrets from U.S. companies.

A year-and-a-half into the coronavirus pandemic, courts across the U.S. are still grappling with how to balance public health concerns with the constitutional rights of a defendant and the public to have an open trial. There’s no standard solution. Some courts are still functioning entirely virtually. Others are back in person. And many are allowing only limited public access.

“This is a fundamental constitutional right that the public has — to have open courts and to be able to see what’s happening in real time in a courtroom,” said David Snyder, executive director of the First Amendment Coalition, which has prodded California courts to improve public access during the pandemic.

COVID-19 space constraints have led judges across the U.S. to exclude or limit public and media attendance at trials.

During Kelly’s trial, which concluded last month with his conviction, a federal judge in New York barred the press and public from the courtroom because jurors were sitting six feet apart in the gallery normally used by observers. Onlookers could watch a live video feed in an overflow courtroom, but it offered no view of the jury and only limited images of the defendant, witnesses and exhibits. At one point, prosecutors played a recording that jurors listened to with headphones, with no audio available for the press and public.


The South Dakota Supreme Court has ordered the state to grant a man whose lower leg was amputated as a result of a work injury permanent and total disability benefits.

Steven Billman was working at Clarke Machine when he cut his foot on a metal shaving in February 2015. His foot became infected and surgeons at Avera Hospital in Sioux Falls had to amputate his right leg just below the knee.

Billman is 64 and has multiple medical conditions, including diabetes. The state Department of Labor and Regulation granted Billman partial disability payments for 2 1/2 years. In 2018, Billman argued that he deserved permanent, total disability benefits, the Rapid City Journal reported.

The department said that while Billman did have some disabilities, he could still do some physical work, has the ability to adapt and learn new technology, and that his age doesn’t prevent him from finding work.

Billman appealed to the Hughes County Court where Judge Christina Klinger upheld that he was not unemployable and inappropriately limited the geographical size of his work search.

The justices this week concluded the department’s determination that Billman is not unemployable” is clearly erroneous.”


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