California court upholds treating app-based drivers as contractors

A California state appeals court on Monday revived a ballot measure allowing app-based services such as Uber Technologies Inc and Lyft Inc LYFT.O> to treat drivers as independent contractors rather than employees, in a major victory for the industry.
A three-judge panel of the San Francisco-based court reversed a lower court ruling in 2021 that the ballot measure, known as Proposition 22, was unconstitutional.
The appeals court ruling did strike down a provision of Prop 22 that limits the ability of gig workers to join unions, but the ruling was still broadly seen as a win for Uber and Lyft.
Shares of Uber and Lyft were up nearly 5% in after-hours trading.