Ride-share companies scored a victory in the California Supreme Court, allowing them to continue classifying gig workers as independent contractors rather than employees. Uber, Lyft, DoorDash and other gig-economy companies invested around $200 million in the passage of Proposition 22, which voters approved in 2020. The state’s highest court rejected a legal challenge from a drivers’ group and a labor union, ending their quest to bring full employee benefits to the state’s gig workers.
The California Supreme Court ruling affirms the state’s definition of drivers and other gig workers as independent contractors. Proposition 22, which received the support of 59 percent of voters in 2020, gives gig workers limited benefits like a baseline income and health insurance for those working at least 15 hours a week. However, it also allows the companies to avoid providing the broad swath of benefits full employees receive.
The Service Employees International Union and a drivers’ group sued
