The California Supreme Court ruled Thursday that drivers for Uber and Lyft are classified as independent contractors, not employees.
The court ruled in favor of Proposition 22, a years-old ballot measure, ending a legal battle that could have reshaped California’s gig economy if it had been overturned, The New York Times reported. This was pointed out in the report.
The bill was first passed in 2020 and ride-hailing companies across the country scrambled to score a win. Less than a year later, a Superior Court judge found the bill unconstitutional for infringing on state legislatures’ ability to amend laws and for not being limited to one subject. A three-judge appeals court later upheld the bill.
Currently, the state Supreme Court has ruled that Uber and Lyft drivers Still classified The justices upheld an appeals court ruling that the law did not violate the California Constitution.
The ballot measure began as a last-ditch effort by gig companies and ride-sharing giants such as DoorDash, Postmates and Instacart to avoid classifying their drivers as employees and extending worker benefits.
The bill, which was a response to state laws that established the threshold for when an employee is considered an independent contractor, offered drivers 120% of the minimum wage and coverage for their health care costs equal to 50% to 100% of the average amount paid by an employer under the Affordable Care Act.
The bill drew criticism from opponents who said it would negatively impact drivers and marveled at the $200 million the companies spent to pass it in 2020. But the bill passed with the support of 58% of voters.
The Hill has reached out to Uber for comment.
inOnline statementLyft said it was pleased the California Supreme Court unanimously upheld the proposal.
“We’re pleased to bring Californians closer to their friends, family and neighbors, providing flexible earning opportunities and access to benefits while preserving drivers’ independence,” Lyft said in a statement. “Prop. 22 has been and will continue to be a win-win for California.”
“Whether drivers and couriers earn just a few hours a week or more, their freedom to choose when and how they work is now firmly enshrined in California law,” Uber spokesman Noah Edwards told the Times.
