From today’s New York Times:
The California Supreme Court ruled on Thursday to uphold a four-year-old ballot measure that classifies Uber and Lyft drivers as independent contractors rather than as employees.
In a win for ride-hailing companies, the decision ends a yearslong legal dispute that could have reshaped Californiaâs gig economy if the ruling had been overturned.
The ballot measure, Proposition 22, was first passed by state voters in 2020. It was overturned in 2021 by a California Superior Court judge, only to be upheld by three appeals court judges last year. The ruling means that Uber and Lyft can continue to operate in the state as usual, and the hundreds of thousands of drivers who work for both services will continue to be classified as independent contractors.
Opponents of Proposition 22 argued that it was unconstitutional because it would limit the state legislatureâs ability to oversee workersâ compensation. Gig companies spent $200 million supporting the measure, which maintained the contractor classification for drivers while conceding some benefits like health care stipends and accident insurance.
Hector Castellanos, a gig worker and a plaintiff in the case, condemned the courtâs decision. In a statement, he called Proposition 22 a âbait and switchâ that comes âat the expense of the Black, brown and immigrant workers.â
Uber, Lyft and the delivery service DoorDash all cheered the decision, saying that the measure maintains flexibility for gig workers and guarantees them some benefits.
âWhether drivers or couriers choose to earn just a few hours a week or more, their freedom to work when and how they want is now firmly etched into California law,â Noah Edwardsen, an Uber spokesman, said in a statement.
Read the complete story here.