The next battle in the long-running California war over who’s an employee and who’s an independent contractor will take place in a San Francisco courtroom with arguments on the constitutionality of a voter-approved, court-suspended initiative carving out gig workers from the state’s worker-friendly classification law.

Uber Technologies Inc., Lyft Inc., DoorDash, and Instacart Inc. bankrolled the inititiave known as Proposition 22, spending more than $200 million to get it passed in November 2020.

The California Court of Appeal, First District, on Tuesday—more than two years after voters approved the measure—will hear their arguments for overturning a successful effort by individual drivers and the Service Employees International Union to block the law. A ruling is expected within 90 days.

“This case is important to preserve the integrity of Californians’ right to propose and adopt laws by using the ballot initiative,” Loren Kaye, president of the California Chamber-affiliated California Foundation for Commerce and Education, said in an email. “The trial judge wrongly walled-off entire subject areas from the voters’ ability to legislate, which we wish to restore.”

The fight dates back to the California Supreme Court’s landmark 2018 Dynamex Operations West Inc. v. Superior Court decision, which set a three-part test for determining whether a worker...

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