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California’s Proposition 22 independent contractor measure is facing legal challenge (CNET)

January 13, 2021

Independent contractor driver law Proposition 22 in California is facing a challenge in California’s Supreme Court from a group of ride-hailing drivers and the Service Employees International Union alleging that it is unconstitutional, CNET reported. California voters approved Proposition 22 last November. The measure puts in place a law that allows human cloud firms such as Uber Technologies Inc. (NYSE: UBER) and Lyft Inc. (NASDAQ: LYFT) to continue to classify their drivers as independent contractors. Proposition 22 was put forward by the industry in response to California’s AB 5 law that some believe could have required the firms to no longer classify their drivers as independent contractors.