California Supreme Court upholds proposition affirming Uber drivers as independent contractors

The California Supreme Court ruled in favor of upholding a 2020 proposition that affirmed gig workers, including Uber and Lyft drivers, as independent contractors.

Proposition 22 made an exception to Assembly 5, which classified what kind of workers were entitled to employee benefits from a company, to allow gig workers, like Uber, Lyft, DoorDash, and similar drivers, to be considered independent contractors. The proposition passed 58.6%-41.4% when it appeared on the ballot in November 2020. The court unanimously upheld the constitutionality of the measure on Thursday, keeping the gig economy the same in the Golden State.

"We affirm the judgment of the Court of Appeal insofar as it held that Business and Professions Code section 7451 does not conflict with article XIV, section 4 of the California Constitution," Goodwin Liu wrote in the opinion of the court Thursday.

The proposition was backed by the ride-share and delivery apps that rely on gig workers to power their service. The coalition argued the measure allowed drivers to remain flexible with their hours while still providing for some health benefits. Molly Weedn, a spokeswoman for Protect App Based Drivers + Services, celebrated the decision in a statement on Thursday.

“The California Supreme Court ruling is an overwhelming victory for voters’ rights and the integrity of our state’s initiative system,” Weedn said. “This ruling is not just a win for the nearly 1.4 million drivers who rely on the flexibility of app-based work to make ends meet, but for millions of consumers and thousands of businesses who rely on app-based services across the state. The courts have spoken, and this issue can finally be put to rest.”

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The legal saga involving Proposition 22 began shortly after it passed, with a state superior court judge ruling the measure unconstitutional in August 2021. The superior court decision would be overruled by a state appellate court, which ruled in March 2023 that the proposition was lawful.

The state Supreme Court's decision marks the likely end of the road for the battle over the constitutionality of the ballot measure.