California Supreme Court Unanimously Upholds Proposition 22 for 1.4 Million Gig Workers

Jul 25, 2024, 07:15 PM

The California Supreme Court has unanimously upheld Proposition 22, allowing app-based companies such as Uber, Lyft, DoorDash, and Instacart to continue classifying their drivers as independent contractors rather than employees. This decision, which maintains the gig-economy business model, was a significant victory for these companies, as it exempts them from the more stringent labor laws that apply to employees. The ruling affirmed that Proposition 22, passed by voters in November 2020, does not conflict with the California Constitution. This outcome follows a series of legislative and judicial battles aimed at overturning the measure, which was heavily backed by the gig companies. The court's unanimous decision ensures that the companies can avoid the additional costs associated with employee benefits, such as healthcare and minimum wage protections, which would have significantly impacted their business operations and financial models. The ruling is seen as a critical moment in the ongoing debate over the classification of gig workers at both state and federal levels. This decision affects approximately 1.4 million drivers in California.