Big players in the gig economy like Uber and Lyft can continue to classify their employees as independent contractors in the state of California, according to a US court ruling.
Proposition 22, a job initiative, was ruled constitutional by the California Court of Appeals.
The bill was challenged by labor organizations and some workers who argued it infringed on their rights to benefits such as sick leave.
According to businessmen, the proposal protects other benefits, such as flexibility.
The most recent ruling reverses a 2021 ruling by a lower California court that ruled that Proposition 22 affected lawmakers’ authority to set workplace rules.
The ruling has been appealed by the state of California, as has a coalition that includes Uber, Lyft and other businesses.