On July 25, 2024, California’s Supreme Court issued a highly anticipated ruling that allows app-based rideshare and delivery companies to classify drivers as independent contractors instead of employees, if certain conditions are satisfied.

In the case of Castellanos v. State of California, California’s Supreme Court upheld Proposition 22 (“Prop 22”) as constitutional, holding that Prop 22 does not unlawfully impede on or restrict the state legislature’s ability to enact workers’ compensation laws or otherwise conflict with the state’s constitution.