A judge in California overruled a lower court, allowing gig-economy companies like ride-sharing apps Uber and Lyft to treat their drivers like contractors, not employees, allowing the companies to save tens of millions of dollars in benefits and other regulatory issues, the Washington Post reports.
The First District Court of Appeal in San Francisco ruled that California’s Proposition 22, which voters passed in 2020 with a 59% majority and which allows gig-economy companies to designate service providers as contractors, was operative, reversing a lower court ruling that Prop 22 was unenforceable.