Uber and Lyft drivers remain independent contractors in California Supreme Court ruling
The California Supreme Court ruled Thursday that app-based ride-hailing and delivery services like Uber and Lyft can continue treating their drivers as independent contractors rather than employees
SACRAMENTO, Calif. — The California Supreme Court ruled Thursday that app-based ride-hailing and delivery services like Uber and Lyft can continue treating their drivers as independent contractors rather than employees.
The unanimous decision by the state's top court is a big win for tech giants. It also ends a yearslong legal battle between labor unions and tech companies over a law dictating the status of app-based service workers in the state.
The ruling upholds a voter-approved law passed in 2020 that said drivers for companies like Uber and Lyft are independent contractors and are not entitled to benefits like overtime pay, paid sick leave and unemployment insurance. Opponents said the law was illegal in part because it limited the state Legislature’s authority to change the law or pass laws about workers’ compensation programs.
A lower court ruling in 2021 had said the measure was illegal, but an appeals court reversed that decision last year. The California Supreme Court’s decision means companies like Uber and Lyft can continue their operations as before.
Uber called the ruling “a victory” for drivers. Companies like Uber, Lyft and DoorDash spent $200 million on a campaign in 2020 to help the law pass.
“Whether 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, putting an end to misguided attempts to force them into an employment model that they overwhelmingly do not want,” the company said in a statement
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