California Court Deems Uber and Lyft Drivers Contractors, Not Employees 

Per a ruling by the California Supreme Court, drivers for Uber and Lyft will remain independent contractors, not employees. As a result, gig companies are not required to offer worker benefits to drivers.

In California, a dispute arose between companies like Uber and labor unions over how drivers should be legally treated. The result was the passage of Proposition 22 four years ago, which allowed companies to classify drivers as independent contractors, thereby avoiding various state labor laws. 

However, shortly thereafter, a superior court judge deemed the legislation unconstitutional. After years of back-and-forth legal battle, the state’s Supreme Court took a look at the lower court’s findings and overruled the decision. The unanimous decision is being seen as a victory for the app companies, which reportedly spent roughly $200 million to pass Prop 22.

According to Uber, the ruling is ultimately a win for drivers, who were reportedly strongly in favor of Prop 22. The upholding of the measure allows drivers and couriers to continue to work how they want without being subjected to a forced employment model.

Critics of Prop 22 saw it as a way for companies to avoid paying overtime, sick leave, and unemployment insurance. Unions believe the law is illegal as it puts limitations on what the state legislature can change related to workers’ compensation. Despite the Supreme Court’s ruling, opponents of Prop 22 vowed to keep the fight going.

“What’s going on is not just,” said Nicole Moore, president of Los Angeles-based Rideshare Drivers United, per AP News. “It’s a sad day for workers.”

Earlier this year, drivers for both Uber and Lyft organized a Valentine’s Day strike to call attention to reported unsafe conditions and unfair wages. A group named the Justice for App Workers called on drivers to withhold rides to and from major airports, like Chicago and Miami. 

Gig companies are hopeful legislation similar to Prop 22 will spread beyond California. Uber noted that other state governments, like New York and Massachusetts, are working with drivers to develop similar models and legislation.