Classifying California Rideshare Drivers as Independent Contractors

The California Supreme Court recently upheld Proposition 22, which defines app-based drivers as independent contractors if certain conditions are met [Castellanos v. California, No. S279622 (Cal., 7-25-24)]. The court analyzed whether the legislature’s authority over workers’ compensation was unlimited and held that it was not. Voters could also pass legislation through voter initiatives.

Proposition 22 provides that app-based drivers are independent contractors, not employees, for the purposes of California workers’ compensation if four elements are met:

1. The rideshare company cannot unilaterally prescribe the dates, times, or minimum number of hours that a driver must work
2. Drivers cannot be required to accept specific rideshare services or deliveries
3. The rideshare company cannot restrict a driver from performing services or deliveries through other network companies except while the driver is performing services for the first company
4. Drivers cannot be restricted from performing services for any other business

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Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for PayrollOrg.