California Supreme Court sides with Uber and Lyft over Prop. 22

The California Supreme Court said it agrees with the Attorney General that section 7451 does not conflict with article XIV, section 4 because the latter provision does not preclude the electorate from exercising its initiative power to legislate on matters affecting workers’ compensation. Under section 7451, a driver for an app-based transportation or delivery company, such as Uber Technologies (UBER), Lyft (Lyft) or DoorDash (DASH), is an independent contractor and not an employee of the company as long as several conditions are met. As a result of section 7451, app-based drivers are not covered by California workers’ compensation laws, which generally apply to employees and not to independent contractors, the high court ruled. This case concerns Business and Professions Code section 7451, which was enacted by the voters through Proposition 22.