The California Supreme Court rejected a challenge to a lower court's decision involving the misclassification of workers as contractors against Uber and Lyft. The decision will not reclassify drivers as employees but will allow them to dispute in court their employment status before Proposition 22 entered into force.  

In January 2021, a district court in California had ruled Uber drivers have the right to proceed with their class action lawsuit over employment benefits they allege the company owes them. Around 4,800 drivers collectively sued Uber for not paying them benefits guaranteed to all employees under the state law, including minimum wage, overtime, and paid sick leave. The drivers claim that the company misclassified them as contractors prior to Proposition 22.