California Supreme Court rules Uber, Lyft drivers classified as contractors

The California Supreme Court ruled Thursday that Uber and Lyft drivers are classified as independent contractors instead of employees.

The court ruled in favor of upholding a years-old ballot measure, Proposition 22, ending the legal dispute that could have reshaped California’s gig economy if it was overturned, The New York Times noted in its reporting.

The measure was first passed in 2020, and ride-hailing companies were eager to take the win nationwide. Less than a year later, a Superior Court Judge deemed the measure unconstitutional because it violated the state legislature’s ability to amend the proposition and was not limited to a single subject. Three appeals court judges then upheld the measure.

Now, the state’s highest court has said that Uber and Lyft drivers can continue to be classified as independent contractors. The justices affirmed the appeals court’s decision that it does not conflict with the California Constitution.

The ballot measure began as a last-ditch effort by gig companies like DoorDash, Postmates, Instacart and the rideshare giants, to avoid having to classify drivers as employees and extend worker benefits.

It was in response to a state law that set standards for when employees can be considered independent contractors. The measure promised drivers 120 percent of the minimum wage and a health care contribution equivalent to 50 to 100 percent of the average provided by employers under the Affordable Care Act.

The measure drew criticism from opponents who said it would hurt drivers and gawked at the $200 million spent by the companies to push it over the finish line in 2020. However, it won, with 58 percent of voters backing it.

The Hill has reached out to Uber for comment.

In a statement online , Lyft said it was thrilled that the California Supreme Court unanimously upheld the proposition.

“We are pleased to continue to bring Californians closer to their friends, family, and neighbors, and provide drivers with access to flexible earnings opportunities and benefits while preserving their independence,” Lyft’s statement said. “Prop. 22 was, and continues to be, a win-win for California.”

“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,” Noah Edwardsen, an Uber spokesperson, told the Times.

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