California Supreme Court Upholds Proposition 22, Classifying Uber and Lyft Drivers as Independent Contractors

Jul 31, 2024, 08:51 PM

The California Supreme Court has upheld a law classifying app-based drivers as independent contractors, delivering a significant victory for gig economy companies such as Uber and Lyft. This ruling supports Proposition 22, which allows these companies to continue treating their drivers as independent contractors rather than employees. A recent federal court decision also dismissed a lawsuit concerning the employment status of drivers for Uber's high-end taxi service, further solidifying the legal standing of gig companies in California. Legal experts noted that this decision reinforces the ability of companies to classify their workers in a manner that aligns with their business models.