Yes. California’s Supreme Court upheld Proposition 22 on July 25, 2024, and state guidance treats qualifying drivers for app-based transportation and delivery companies—including Uber, Lyft and DoorDash—as independent contractors for California purposes. That status is conditional: a platform must meet Proposition 22’s requirements. The measure also provides specific compensation and protections, but it does not give drivers the full package of benefits attached to employee status.
What the California Supreme Court decided
In Castellanos v. State of California, the California Supreme Court upheld Proposition 22’s constitutionality on July 25, 2024. The court’s opinion reports that 58.6% of California voters approved the measure in November 2020. The current California Franchise Tax Board guidance says drivers for app-based transportation and delivery companies are independent contractors for California purposes when specified conditions are met. Read the court opinion and California Franchise Tax Board guidance.
Proposition 22 created a specific framework for qualifying app-based drivers. It did not erase California’s general worker-classification rules or automatically make every person driving for an app a contractor. The court describes the measure against the background of AB 5, which codified the ABC test for determining whether a worker is an employee.
When Proposition 22 allows contractor classification
Under Business and Professions Code section 7451, a network company can classify an app-based driver as an independent contractor if it satisfies the measure’s conditions. The court opinion identifies requirements that protect driver choice and flexibility:
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- The company does not unilaterally set specific dates, times or minimum hours when the driver must be logged into its app.
- The company does not require the driver to accept a particular ride or delivery as a condition of keeping access to the platform.
- The company does not restrict the driver from working for other network companies outside time spent on an engaged ride or delivery.
- The company does not restrict the driver from pursuing other lawful occupations or businesses.
If the conditions are not satisfied, the Proposition 22 contractor classification does not apply. The California Labor Commissioner says it may hear Labor Code claims for conduct after December 15, 2020, when a driver does not meet Proposition 22’s independent-contractor test. The Labor Commissioner’s explanation of AB 5 and related cases also says the agency lacks authority to enforce rights created by Proposition 22 itself.
What drivers receive under Proposition 22
Proposition 22 pairs contractor classification with a set of measure-specific compensation and protections. They are not identical to employee benefits, and the earnings guarantee does not pay for every hour a driver is available to work.
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Minimum compensation and engaged time
The official 2020 Legislative Analyst’s Office analysis describes a guaranteed minimum of 120% of the applicable local minimum wage for each hour of engaged driving time. Engaged time covers time spent on a ride or delivery; waiting time is excluded from this calculation. This is a minimum-compensation formula, not a statement of a driver’s total take-home earnings. Read the LAO’s Proposition 22 analysis.
Per-mile rate for 2026
The California State Treasurer lists a Proposition 22 per-mile compensation rate of $0.37 per mile for calendar year 2026. The rate is adjusted annually using the November Consumer Price Index for All Urban Consumers (CPI-U) from the preceding year, so the 2026 figure should not be treated as a permanent rate. See the Treasurer’s Proposition 22 rate information.
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Health-care subsidy and insurance
Qualifying drivers may receive a quarterly health-care subsidy. The LAO analysis says drivers who normally work more than 15 engaged hours per week qualify for help paying for health insurance. The measure also provides occupational accident insurance for medical expenses and lost income resulting from injuries suffered while online. The LAO describes additional provisions covering vehicle insurance, safety training, anti-discrimination and harassment policies, background checks, and a limit on working more than 12 hours in a 24-hour period for one company. The LAO analysis outlines these provisions.
How Proposition 22 differs from employee classification
The practical distinction is not simply “benefits versus no benefits.” Under generally applicable classification rules such as AB 5’s ABC test, the question is whether the company meets the relevant legal test for treating a worker as an independent contractor. Proposition 22 provides a different test for covered app-based drivers and attaches specified alternative compensation and protections to that classification.
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| Issue | Employee classification under general rules | Contractor classification under Proposition 22 |
|---|---|---|
| Classification test | Generally applicable rules, including AB 5’s ABC test, apply as relevant. | Available to qualifying app-based drivers only if the network company meets Proposition 22’s conditions. |
| Benefits and protections | Employee status can bring applicable employee benefits and protections. | Provides specified alternatives, including a minimum-compensation formula, a qualifying health-care subsidy and occupational accident insurance. |
| Time counted for the earnings floor | Not specified here; it depends on the applicable employment rules. | 120% of local minimum wage for engaged driving time; waiting time is excluded, according to the LAO’s 2020 analysis. |
| Additional labor rights | Not specified here; rights depend on the applicable law. | California’s 2025 rideshare collective-bargaining development gives rideshare workers a unionization route while they remain contractors; the AP report says delivery-app drivers are excluded. |
What the decision means for Uber, Lyft and DoorDash drivers
The Supreme Court decision left Proposition 22 in force; it did not issue a blanket ruling that every platform’s practices always satisfy the measure. For a driver, the relevant questions are whether the company meets Proposition 22’s conditions and which of the measure’s protections apply to that driver’s circumstances. California’s Labor Commissioner says relief in its wage-theft lawsuits against Uber and Lyft does not extend beyond December 15, 2020, based on Castellanos; the agency describes those cases as having been premised on alleged misclassification under the ABC and Borello tests.
A separate labor development was reported in 2025: the Associated Press says California enacted a law allowing rideshare workers to unionize while retaining contractor classification and requiring companies to bargain in good faith. The AP report says the law does not cover delivery-app drivers. Read the Associated Press report.
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