California Supreme Court Upholds Gig Worker Law Backed by Uber, Lyft

In a major win for app-based companies such as Uber, Lyft, and DoorDash, the California Supreme Court upheld a ruling that classifies gig workers as independent contractors rather than employees.

The Details: The decision ends a lengthy legal battle over whether these workers are entitled to typical employee benefits such as paid sick leave, unemployment insurance, and overtime pay. Proposition 22, the ballot measure at the center of the dispute, was upheld by 59% of California voters in 2020.

The Arguments: Opponents of Proposition 22 say it strips gig workers of basic labor rights. Some worker advocacy groups say the law's promised benefits have proven illusory, stating that since the law's enactment, driver pay has fallen and worker safety has deteriorated. Proponents of Proposition 22, primarily composed of the ride-hailing and delivery companies that rely on gig workers, maintained that the measure allowed drivers flexibility with their work hours while still providing some health benefits. They contend that this ruling is a victory for workers' rights and the integrity of California's legislative initiative system.

For Context: Proposition 22's legal journey has been long and tumultuous, initially being ruled unconstitutional by a state superior court judge in 2021 before being ruled lawful by a state appellate court in 2023. The recent Supreme Court ruling marks possibly the end of ongoing legal battles over the constitutionality of this ballot measure.

How the Media Covered It: Sources across the spectrum framed the news as a win for gig workers' rights.  An editor wrote this summary with the help of AllSides AI.