A California court upheld treating app-based drivers for companies like Uber and Lyft as independent contractors rather than employees, in a major victory for the industry
Prop 22 was approved in November 2020 by nearly 60% of voters in California. It exempted app-based drivers from a 2019 state law known as AB5 that makes it difficult to classify workers as independent contractors rather than employees.
Prop 22 allows app-based transportation services to classify drivers as independent contractors as long as they are paid a minimum wage while transporting passengers and receive expense reimbursements and healthcare subsidies.found that it violated the state constitution because it limited the legislature's power to include gig drivers within the scope of California workers' compensation law.
Uber's chief legal officer, Tony West, said in a statement that the ruling was a victory for gig workers and millions of Californians who voted in favor of Prop 22.
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