Caption
In this Jan. 12, 2016, file photo, a ride share car displays Lyft and Uber stickers on its front windshield in downtown Los Angeles. A California appeals court ruled March 13, 2023, that a voter-backed initiative exempting Uber and Lyft from a key provision of state employment law is constitutional, a reversal of a lower court decision that marks a win for the ride-hailing giants. / AP
SACRAMENTO, Calif. — App-based ride hailing and delivery companies like Uber and Lyft can continue to treat their California drivers as independent contractors, a state appeals court ruled Monday, allowing the tech giants to bypass other state laws requiring worker protections and benefits.
The ruling mostly upholds a voter-approved law, called Proposition 22, 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 Monday's ruling reversed that decision.
"Today's ruling is a victory for app-based workers and the millions of Californians who voted for Prop 22," said Tony West, Uber's chief legal officer. "We're pleased that the court respected the will of the people."
The ruling is a defeat for labor unions and their allies in the state Legislature who passed a law in 2019 requiring companies like Uber and Lyft to treat their drivers as employees.
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