On July 25, 2024, the California Supreme Court issued an opinion upholding the statewide ballot measure that classifies app-based drivers as independent contractors. Voters passed the law (also known as Proposition 22) in November 2020, funded in large part by app-based rise services. The law exempts app-based drivers from the otherwise-required “ABC” test to determine if a worker is an independent contractor or an employee.

What is the law that was challenged?

In November 2020, California voters passed Proposition 22 (California Business & Professions Code § 7448 et seq.), which made app-based drivers independent contractors — rather than employees — if:

1. The network company does not unilaterally prescribe specific dates, times of day, or a minimum number of hours during which the app-based driver must be logged into the network company’s online-enabled application or platform.
2. The network company does not require the app-based driver to accept any specific rideshare service or delivery service request as a condition of maintaining access to the network company’s online-enabled application or platform.
3. The network company does not restrict the app-based driver from performing rideshare services or delivery services through other network companies, except during engaged time.
4. The network company does not restrict the app-based driver from working in any other lawful occupation or business.

Under Proposition 22, the app-based drivers and the company (the “network...

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