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In plain English, the ruling noted above means the law that permitted companies to classify rideshare drivers as contractors instead of employees has been struck down. Prop 22, previously passed by voters in the fall, was deemed unenforceable and also unconstitutional. Gig companies had spent more than $200 million supporting the law.
Now that these companies are not exempt from treating drivers as official employees, the power pendulum has swung in favor of labor. Below, I provide a look at three gig stocks investors should avoid after the Prop 22 ruling. These stocks are Uber Technologies (UBER), Lyft (LYFT), and DoorDash (DASH).
