California court upholds Proposition 22. A Monday ruling from a state appeals court in California is good news for delivery and ride-share drivers, as well as a win for free markets and direct democracy. The court upheld a ballot initiative passed by California voters in 2020, securing the status of delivery and ride-share drivers as contractors, not employees.
Back in 2019, California passed Assembly Bill (AB) 5, which defined many independent contractors—from gig workers like Uber and Lyft drivers to freelance writers to business consultants and more—as employees. As such, workers would be entitled to employee benefits and protections but risk losing a lot of flexibility and independence. And because many businesses can't afford to treat all contractors as employees, laws like California's AB5 can (and have) put some independent contractors entirely out of work.
