A California appeals court has ruled that Uber and Lyft drivers are employees, not independent contractors, entitling them to benefits including minimum wage, overtime, health insurance, and unemployment insurance.
Ruling Impact
- 300,000+ drivers in California affected
- Estimated cost to companies: $1.5 billion annually
- Benefits required: minimum wage, sick leave, health insurance
- Uber threatens to exit California market
The ruling directly contradicts Proposition 22, which voters approved in 2020 to exempt gig companies from employee classification. The court found Prop 22 unconstitutional on separation of powers grounds.
