Ride-sharing apps score court win in California, can treat drivers as contractors

The First District Court of Appeals in California determined on Monday that ride-sharing apps Uber and Lyft may treat drivers as contractors instead of full-time employees.

At the heart of the matter was Proposition 22, a California initiative that exempted Uber, Lyft, and other ride-sharing or delivery-app companies from counting drivers as full time employees and therefore meant they did not need to provide health insurance, the Washington Post reported.

A lower court in 2021 found the measure unenforceable, arguing that the voter initiative had infringed on the powers of the California legislature to set workplace standards, according to Fox Business.

Tony West, Uber's legal chief, celebrated the Monday ruling, calling it a "victory for app-based workers."

A Lyft spokesperson told Fox that "[w]e are pleased that the court upheld the democratic will of the voters and the fundamentals of Prop 22... Prop 22 protects the independence drivers' value and gives them new, historic benefits." 

Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.