California Supreme Court Says Uber Drivers are Independent Contractors

Some history: In 2019, California codified the ABC test for determining worker status: employee or independent contractor? The ABC test makes it very difficult for companies to treat workers as independent contractors. In 2020, a voter-passed proposition created an exemption from the test for workers of app-based ride-sharing and delivery services, such as Uber, Lyft, and DoorDash, provided certain conditions are met. The legality of the exemption has been subject of a lawsuit, but now the highest court in California says the exemption is legal. #IdeaoftheDay