On Thursday, the California Supreme Court upheld Proposition 22, a California ballot measure that classified Uber and Lyft drivers as independent contractors, not employees.
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The court ruled in favor of upholding a years-old ballot measure, Proposition 22, ending the legal dispute that could have reshaped California’s gig economy if it was overturned, The New York Times noted in its reporting.
The measure was first passed in 2020, and ride-hailing companies were eager to take the win nationwide. Less than a year later, a Superior Court Judge deemed the measure unconstitutional because it violated the state legislature’s ability to amend the proposition and was not limited to a single subject. Three appeals court judges then upheld the measure.
Now, the state’s highest court has said that Uber and Lyft drivers can continue to be classified as independent contractors. The justices affirmed the appeals court’s decision that it does not conflict with the California Constitution.
Uber and Lyft drivers, as part of the gig economy, have been regarded in the U.S. as independent contractors, which appeals to many drivers who see advantages in being able to work as much as they want, when they want, and how often they want. They enter into these agreements voluntarily, with no coercion on the part of Uber or Lyft. That’s what free employment markets look like. But a lot of liberal jurisdictions don’t see things that way.
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The state law that was in question here would have forced Lyft and Uber to make their drivers employees rather than contractors, which (like so many California government initiatives) would have raised the prices of those services.
The ballot measure began as a last-ditch effort by gig companies like DoorDash, Postmates, Instacart and the rideshare giants, to avoid having to classify drivers as employees and extend worker benefits.
It was in response to a state law that set standards for when employees can be considered independent contractors. The measure promised drivers 120 percent of the minimum wage and a health care contribution equivalent to 50 to 100 percent of the average provided by employers under the Affordable Care Act.
Taking part in the gig economy, like so many things, is a matter of choice. Gig workers enjoy significant advantages; flexibility, and independence; Lyft and Uber drivers, for example, can generally work as much or as little as they please, when they please, and where there is any demand for their services. No one, it should be noted, is forced to work for any of these companies; it is a choice.
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A choice that people in free societies make. Free people who have the right to decide for themselves what to do with their time, their abilities, their resources, and their assets. Free people who have the right to enter freely into a contract with an employer or a gig contract company (like Lyft or Uber.)
As of this writing, it’s unclear if this controversy will end here, but for the moment, the California Supreme Court has turned in a win for free enterprise.