The Supreme Court of California ruled on Thursday that drivers working for companies such as Uber and Lyft are categorized as contractors, thus disqualifying them from accessing benefits granted to regular employees.
The ruling came as part of a lawsuit against Proposition 22, a California state law that lets app-based transportation or delivery companies such as Uber classify drivers as independent contractors and not employees covered by workers’ compensation laws. A group of four drivers and two organizations—Service Employees International Union (SEIU) California State Council and the Service Employees International Union—sued to overturn the rule. A trial court initially found Proposition 22 “unconstitutional.” However, an appeals court later reversed the decision.
