The California Supreme Court has unanimously upheld Proposition 22, a voter-approved law that allows gig companies such as Uber, Lyft, DoorDash, and Instacart to classify their drivers and delivery workers as independent contractors instead of employees. Passed by California voters in 2020, Proposition 22 excludes certain gig workers from full employee benefits, including workers’ compensation, sick leave, and overtime. In exchange it guarantees the exempted employees minimum earnings of 120% of minimum wage, health care stipends, occupational accident insurance and accidental death insurance.

The decision marks a major victory for gig companies, who spent over $200 million to pass the proposition. in one of the most expensive political campaigns in American history. The court’s ruling maintains the current gig economy framework in California, ensuring that more than 1.4 million app-based gig workers remain classified as independent contractors instead of employees.