California Supreme Court Upholds Proposition 22

The California Supreme Court has upheld Proposition 22, allowing app-based companies like Uber and Lyft to classify their drivers as independent contractors rather than employees. This unanimous decision affirms a 2020 voter-approved measure that provides some worker protections, including compensation at 120% of the local minimum wage and a health insurance allowance, but does not extend full employee benefits. Gig companies have hailed the ruling as beneficial, claiming it has provided over $1 billion in direct benefits to drivers. However, critics, including labor union leaders, argue that the decision undermines essential labor laws and shifts risks onto workers. The ruling follows a long legal battle, indicating that gig workers will continue to fight for more comprehensive rights. With over 1.4 million Californians working in the gig economy, the implications of this decision are significant for the future of labor rights in the state.