California Supreme Court Upholds Gig Worker Status for Uber and Lyft Drivers

The ruling allows app-based companies to classify drivers as independent contractors, maintaining the current gig economy model.

• The decision upholds Proposition 22, a voter-approved measure from 2020.
• Gig companies spent $200 million campaigning for Prop. 22 to pass.
• Drivers will not receive employee benefits like overtime pay and sick leave.
• Labor unions argue the law denies drivers proper protections and fair pay.
• Shares of gig economy firms initially rose following the ruling.

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