United States of America: Issued Supreme Court Ruling in Lawsuit regarding worker qualification in Proposition 22 (Castellanos v California)

On 25 July 2024, the Supreme Court of California issued a ruling upholding the constitutionality of Proposition 22, a state ballot measure that classifies drivers for rideshare companies as independent contractors rather than employees. Proposition 22 was approved in 2020 and defines app-based transportation and delivery drivers as independent contractors and also adopts certain labour and wage policies that apply only to app-based drivers and to companies such as Uber, Lyft, and DoorDash. The ruling confirms that rideshare drivers are not covered by California’s worker compensation laws but are entitled to benefits under Proposition 22, including 120% of the state minimum wage, healthcare stipends, occupational insurance, death insurance, and an additional 30 cents per mile for active driving hours, excluding waiting times, provided the drivers are working over 15 hours a week.