Uber, Lyft Applaud California Supreme Court Ruling on Gig Workers

The California Supreme Court ruled Thursday (July 25) that gig workers can be classified as independent contractors, ending a long legal battle in the state.

The court’s ruling upheld a lower-court decision that Proposition 22, a 2020 ballot measure that allowed companies to classify drivers as gig workers, was constitutional, the Wall Street Journal (WSJ) reported Thursday.

A yearslong legal battle followed voters’ passage of Proposition 22, as some drivers and the Service Employees International Union (SEIU) challenged the measure, according to the report.

Following Thursday’s decision, Tia Orr, executive director of SEIU California, said in a post on X (formerly Twitter) that regardless of the ruling, “we’re just getting started!”

“We won’t stop mobilizing and organizing until gig workers have their dignity and their union, no matter how many 100s of millions greedy gig corps spend,” Orr said in the post.

Regardless of the @CaSupremeCourt #Prop22 ruling today, we’re just getting started!!! We won’t stop mobilizing and organizing until gig workers have their dignity and their UNION, no matter how many 100s of millions greedy gig corps spend. #UnionsForAll

— Tia Orr (@TiaOrr1111) July 25, 2024

Uber said in a statement posted on its website that the court’s decision affirmed the will of the 10 million Californians who voted in favor of Proposition 22 and protects the independence of drivers.

“Whether drivers or couriers choose to earn just a few hours a week or more, their freedom to work when and how they want is now firmly etched into California law, putting an end to misguided attempts to force them into an employment model that they overwhelmingly do not want,” Uber said in the statement.

Lyft said in a statement that the median hourly earnings of drivers on its platform in California increased 22% between 2019 and 2023 and that more than 80% of California drivers said Proposition 22 has been good for them.

“We are pleased to continue to bring Californians closer to their friends, family and neighbors, and provide drivers with access to flexible earnings opportunities and benefits while preserving their independence,” Lyft said in its statement.

The legal battle over the classification of gig workers is not limited to California.

Lawmakers in Minnesota passed a measure setting a minimum wage for gig drivers, the top court in Massachusetts heard arguments over competing ballot proposals that would redefine the relationship between app-based companies and drivers in that state, and the U.S. Department of Labor is facing legal challenges to a rule that would make it more difficult for companies to treat workers as independent contractors.