Uber Technologies (NYSE: UBER) and Lyft Inc (NASDAQ: LYFT) are trading lower Monday after a California judge ruled that classifying gig workers as independent contractors rather than employees is unconstitutional.
Alameda County Superior Court Judge Frank Roesch found Proposition 22 to be unenforceable because of a section that “limits the power of a future legislature to define app-based drivers as workers subject to workers’ compensation law.”
“It appears only to protect the economic interest of the network companies in having a divided, ununionized workforce, which is not a stated goal of the legislation,” Roesch said in his ruling.
Uber also announced a secondary offering of about $25.3 million shares to be sold by selling stockholders.
Price Action: Uber has traded as high as $64.05 and as low as $28.48 over a 52-week period. Lyft has traded as high as $68.28 and as low as $21.34 over a 52-week period.
At last check Monday, Uber was down 4.38% at $38.20 and Lyft was down 4.55% at $43.80.
Photo: courtesy of Uber.
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