California Supreme Court Rules That Uber and Lyft Drivers Will Remain Independent Contractors

image via WIRED

July 25, 2024, 8:03 PM

• •The California Supreme Court ruled unanimously that drivers for app-based companies including Uber, Lyft, and DoorDash will remain independent contractors, as opposed to employees.
• •The decision, upholding a state ballot measure called Proposition 22, was considered a major victory for the gig-economy companies.
• •Driver advocates have long argued that those behind the wheel were due the same sort of benefits offered to full-time employees, including health care, sick pay, and workers’ compensation. The companies have said that gig work is an entirely new and flexible form of work, and that treating drivers as employees would reshape their businesses.

The California Supreme Court has ruled that drivers for app-based companies including Uber, Lyft, and DoorDash will remain independent contractors, as opposed to employees. The decision is a major victory for the gig-economy companies, who had argued that treating drivers as employees would be too costly and would undermine the flexibility of the gig economy. Driver advocates have long argued that those behind the wheel were due the same sort of benefits offered to full-time employees, including health care, sick pay, and workers’ compensation. The ruling is a setback for those advocates, but it could have a ripple effect on other states with similar laws.

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