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Case Study: CA Supreme Court Rules Gig Economy Drivers Are Independent Contractors

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After nearly four years of court battles, Proposition 22—also known as the Protect App-Based Drivers and Services Act—has been upheld by the California Supreme Court. The voter-enacted law allows drivers for app-based transportation and delivery companies—also known as “network companies”—to be classified as independent contractors, as long as several conditions are met.

Summary of Proposition 22

In January 2020, Assembly Bill No. 5 (AB-5)—the landmark bill that created a streamlined test for determining which workers are independent contractors—took effect. AB-5 codified the “ABC test” set forth by the California Supreme Court in Dynamex Operations West, Inc. v. Super.

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