The California Supreme Court deserves two cheers for its unanimous decision last month upholding the constitutionality of Proposition 22—the 2020 ballot initiative that exempted ride-sharing and delivery drivers from the state's ban on independent contracting and provided drivers with a few benefits. The ruling is a huge win for the gig economy, thus allowing Uber, Lyft, DoorDash, and others to continue offering their valuable services.
Why am I withholding that cherished third cheer? Well, the state high court in 2018 sparked this disruptive fracas over independent contracting with its overreaching Dynamex decision. In that case, the court—also unanimously—concocted an "ABC Test" for determining whether companies can use contractors as workers. No need to go over the test's minutiae, but companies could only hire independent workers in narrow circumstances.
