The California measure that legalizes gig economy companies to keep workers as independent contractors just passed a major test, with the state Supreme Court throwing out a challenge.

• Prop 22 was crafted to dismantle a state law: California had previously passed legislation to make gig workers employees and allow them some of the benefits given to full-time workers. But Prop 22 passed with 58% of the vote in November, nullifying the law and formalizing the previous independent contractor status of such workers. 

• That made many ride-sharing drivers and a prominent union unhappy: They sued and alleged Prop 22 prevented lawmakers from doing their job, violating the California Constitution, and were joined in amicus briefs by city attorneys from San Francisco and Los Angeles.

The effects of Prop 22

Prop 22 has inspired more than Uber and Lyft. In response, grocery chains like Albertsons and Vons have replaced full-time delivery staff with gig workers.  

The Verdict

Lyft is lobbying to bring Prop 22-esque regulations elsewhere in the United States, forming political action committees in New York and Illinois.