App companies lose constitutional challenge to worker ordinance
Like many other states, California has an app-based workers protection law providing multiple protections for drivers, regardless of whether they are deemed to be employees. One of the requirements limits companies’ ability to fire an app-based worker solely based on algorithmic or other computer-generated criteria. A similar ordinance addressed to gig delivery drivers was passed by the city of Seattle, which Uber and Instacart challenged to the U.S. 9th Circuit Court of Appeals (whose rulings also apply to California employers) on constitutional grounds.
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Uber and Instacart are large companies in the growing gig economy. These and other companies like them connect workers with customers, then take a cut of payments made by the customers. Uber and Instacart act largely as delivery services. Their workers pick up orders from restaurants, retailers, or even other customers on the app. The workers can also operate as personal shoppers by going to businesses like grocery stores, browsing for items, and delivering those items to customers. Both workers and customers access the services through accounts on apps built by the network companies.