Bloomberg Law: Uber, Lyft Can Treat Drivers as Contractors, Court Rules

Companies that employ app-based drivers such as Uber Technologies Inc., DoorDash Inc., and Lyft Inc. can designate workers as independent contractors after a California appeals court ruled yesterday that Proposition 22 “does not intrude on the Legislature’s workers’ compensation authority or violate the single-subject rule.” Proposition 22 is a voter-backed initiative that allows workers to retain their independent status and gig companies to refrain from paying overtime and other expenses under California’s labor laws. The Protect App-Based Drivers and Services coalition, a proponent of the initiative and intervenor, noted the ruling as “a historic victory for the nearly 1.4 million drivers who rely on the independence and flexibility of app-based work to earn income, and for the integrity of California’s initiative system.” O’Melveny & Myers LLP represents Protect App-Based Drivers and Services.

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