Uber And Lyft Can Classify Drivers As Contractors, Says California Supreme Court

Photo: Justin Sullivan

The California Supreme Court upheld Proposition 22 in a unanimous decision on Thursday. The ballot measure allows Uber, Lyft and a plethora of other gig app companies to classify drivers on their services as contractors instead of employees. Prop 22 passed in November 2020 with 58.6 percent of voters in favor of the measure. Both Uber and Lyft threatened to suspend services in California if the measure was struck down.

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Along with their threats, Uber and Lyft spent over $200 million on its Yes on Prop 22 campaign. Unions and driver advocacy groups formed the core of the grassroots opposition movements before and after the vote. The Service Employees International Union and a group of drivers were the first to file a lawsuit contesting Proposition 22’s constitutionality in January 2021, according to the Los Angeles Times. Understandably, drivers weren’t going to accept being denied basic employment rights like a minimum wage, overtime and sick leave.

The Proposition 22 case reached the state’s highest court after the Superior Court of Alameda County ruled the measure was unconstitutional. Judge Frank Roesch’s August 2021 decision centered on the initiative’s requirement for a 7/8ths majority to make any amendment to the law in the state legislature and its definition of amendment including unrelated legislation.

In the years that Proposition 22 was being argued in court, the measure was enforced as law and app drivers reported that their pay was slashed as a result. There were accounts of workers juggling three different apps just to make ends meet. Prop 22 in California is likely only the beginning as Uber and Lyft are pushing for similar laws in other states across the country.