California Gig Workers to Remain Contractors, Prop 22 Upheld (2)

Uber Technologies Inc. and Lyft Inc. can keep classifying California drivers as independent contractors, after the state’s top court said a company-backed law passed by voters doesn’t wrongly curtail the legislature’s power over worker protections.

The unanimous ruling upholding California’s Proposition 22, which received majority voter support in 2020, was released Thursday.

The favorable ruling for the gig economy companies removes what investors regarded as a major regulatory overhang. Had the judge ruled to invalidate Prop 22, the companies would have faced the threat of millions of dollars in additional cost to pay drivers if they were to be reclassified ...