California Court Upholds Gig-Worker Proposition 22

The California Supreme Court has upheld Proposition 22, a ballot measure passed in 2020 that classifies Uber and Lyft drivers as independent contractors rather than employees. This ruling concludes a lengthy legal battle that began when a lower court overturned the measure in 2021, only for it to be reinstated by appeals court judges last year. The decision allows Uber and Lyft to continue their operations in California without changes to their driver classification, impacting hundreds of thousands of gig workers. Proponents of Proposition 22 argue it provides flexibility for drivers while offering some benefits, such as health care stipends and accident insurance. However, opponents, including gig workers and labor activists, criticize the measure as unconstitutional and detrimental to workers' rights, particularly for marginalized communities. They express concerns that the ruling limits the state legislature's ability to regulate workers' compensation. Despite the court's decision, experts suggest that challenges to Proposition 22 may still arise, highlighting ongoing debates about gig worker rights and compensation. While some states have enacted legislation to improve pay and benefits for gig workers, California's ruling represents a divergence from trends in other regions, where there is a push for greater protections and reclassification of gig workers as employees.