California’s top state court on Thursday upheld a measure approved by voters allowing app-based drivers, for services like Uber and Lyft, to continue to be classified as contractors rather than employees.
The California Supreme Court's ruling is a major win for the ride-share industry, which has said that many companies would end or limit service in California if they were forced to treat drivers as their employees.
The ruling upholds Proposition 22, a voter-approved law that said drivers for companies like Uber and Lyft are independent contractors and are not entitled to benefits like paid sick leave and unemployment insurance.
A lower court ruling in 2021 had said Proposition 22 was illegal, but that ruling has since been overturned...