Proposition 22 exempts delivery-app and ride-share companies such as Uber and Lyft — pioneers of the digital gig economy — from classifying their drivers as full-time employees, meaning the companies do not have to provide benefits such as health insurance. (Under Proposition 22, they are only required to provide a stipend toward drivers’ health insurance coverage.)
Uber, Lyft and other gig-economy apps poured $200 million into the campaign to pass Prop 22, as it is commonly called. The measure passed with around 59 percent of the vote, but some voters said they misunderstood the question on their ballots and instead meant to give drivers more benefits, not fewer.
Monday’s ruling is likely to be appealed.
In a statement, Uber’s chief legal officer Tony West hailed the ruling as “a victory for app-based workers” and said Proposition 22 “affords them new benefits while preserving the unique flexibility of app-based work.”
This is a developing story and will be updated.
