California Supreme Court upholds Prop 22; ride-share drivers remain contractors

California’s top state court on Thursday upheld a measure approved by voters allowing app-based drivers for services like Uber and Lyft to continue to be classified as contractors rather than employees.

The California Supreme Court’s ruling is a major win for the ride-share industry, which has said that many companies would end or limit service in California if they were forced to treat drivers as their employees.

The ruling upholds Proposition 22, a voter-approved law that said drivers for companies like Uber and Lyft are independent contractors and are not entitled to benefits like paid sick leave and unemployment insurance.

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A lower court ruling in 2021 had said Proposition 22 was illegal, but that ruling has since been overturned.

“Moments ago, the California Supreme Court upheld Proposition 22, affirming the will of the nearly 10 million Californians who voted to deliver historic benefits and protections to drivers, while protecting their independence. 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,” Uber said in a statement.

California’s Supreme Court ruling is a blow for labor unions and their allies in the state Legislature, which passed a law in 2019 requiring companies like Uber and Lyft to treat their drivers as employees.

The Associated Press contributed to this report.

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