California top court upholds ballot measure treating Uber, Lyft drivers as independent contractors

California’s top state court upheld a measure allowing app-based services like Uber and Lyft to consider drivers in the state as independent contractors rather than employees. The ruling is a victory for the ride-hailing industry, which argued that treating drivers as employees would limit services. The court dismissed a lawsuit by the Service Employees International Union and four drivers who claimed the measure was unconstitutional. The ruling was disappointing for the union, but they stated that drivers can continue to fight for their rights by seeking to unionize. The classification of gig workers as employees or contractors is a significant issue for the ride-service industry, as employees are entitled to greater benefits. Prop 22, passed in November 2020, allows app-based transportation services to classify drivers as independent contractors while granting some benefits, such as expense reimbursements and subsidies for health insurance. The decision by the California Supreme Court emphasized the exclusive power of the legislature to regulate the state’s workers’ compensation system.