California’s Court of Appeal has upheld a law that classifies gig workers as independent contractors rather than employees.
In November 2020, Proposition 22 was passed in California, exempting gig work-based businesses from state labor laws that would require them to treat all hired workers as employees and provide them with benefits. Tech giants like Uber, Lyft, DoorDash and Instacart are reported to have spent a collective $200 million on a campaign that helped pass the original ballot measure.
In 2021, the law was ruled unconstitutional by a California judge. This new appeal overturned that ruling, except for a portion that discussed the California Legislature’s authority.
The ruling is a significant win for companies that rely on gig workers, but opponents say the law leaves workers without protections.
