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California Supreme Court Upholds Proposition 22 for Uber, Lyft, DoorDash, Instacart

Jul 25, 2024, 05:28 PM

The California Supreme Court has upheld Proposition 22, a voter-approved measure that allows app-based companies like Uber, Lyft, DoorDash, and Instacart to classify their drivers as independent contractors rather than employees. This decision affirms that the measure does not conflict with the state constitution, specifically Business and Professions Code section 7451 and article XIV, section 4, as determined by the Court of Appeal. Proposition 22, passed in November 2020, was a significant initiative backed by gig-economy companies to maintain their business model. The ruling is seen as a major victory for these companies, enabling them to continue operating under the gig-economy framework in California.