Topline
Rideshare giants Uber and Lyft can continue to treat drivers as independent contractors in California, the state supreme court ruled on Thursday, notching a significant win for the rideshare apps, even as those companies face growing pushback from labor groups.
Uber and Lyft will continue to be able to rely on drivers as contractors in California, preserving … [+]
Key Facts
The California Supreme Court ruled in favor of a recently approved state ballot measure called Proposition 22, which allows companies in the state to classify drivers as gig workers, with the court ruling the measure is constitutional.
Thursday’s ruling caps off a three-year legal battle, following a 2021 state Superior Court judge’s decision that found the measure is “unenforceable,” and a 2023 state Appeals Court decision that overturned the Superior Court ruling.
In its ruling, the California Supreme Court found drivers with the rideshare companies—and food delivery company DoorDash—are independent contractors and not company employees, meaning they are not covered by the state’s worker compensation laws.
In a statement following the ruling, Uber argued the decision allows drivers’ “freedom to work when and how they want is now firmly etched into California law,” though the ruling also comes as rideshare companies face criticism from labor groups pushing for higher wages and some of the legal protections that come with formal employee status.
This is a developing story and will be updated.
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