California Supreme Court Upholds Proposition 22 Allowing Uber, Lyft, DoorDash, Instacart to Classify Drivers as Contractors

Jul 25, 2024, 05:26 PM

California's Supreme Court has upheld Proposition 22, a voter-approved measure that allows app-based services such as Uber, Lyft, DoorDash, and Instacart to classify their drivers as independent contractors rather than employees. The ruling confirms that this classification does not conflict with the state constitution, specifically Business and Professions Code section 7451 and article XIV, section 4. This decision marks a significant victory for gig-economy companies, enabling them to continue their business model in California. The measure, passed in November 2020, has faced multiple legal challenges but remains intact following this latest court decision, which was made unanimously.