Are Uber drivers still independent contractors in California?

In California, a law is upheld that classifies Uber drivers as contractors rather than employees. The ruling is a victory for ride-share firms and food-delivery app platforms as the law designates drivers as self-employed, meaning they do not have the right to some regular employee benefits. 1 min.



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In 2021, a California state judge ruled Prop. 22 unconstitutional, but in 2023 a California appeals court overturned the bulk of that decision. Although further legal challenges are likely, as of 2023 Uber drivers and other rideshare drivers in California are independent contractors, not employees.

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Starting in 2020, drivers for both rideshare companies will be considered employees. Undeterred, Lyft and Uber, along with Door Dash have united and vowed to spend $90 million to pass a ballot initiative in 2020 exempting their workers from AB 5.

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SACRAMENTO, Calif. — App-based ride hailing and delivery companies like Uber and Lyft can continue to treat their California drivers as independent contractors, a state appeals court ruled Monday, allowing the tech giants to bypass other state laws requiring worker protections and benefits.

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According to our research, if Uber instead employed drivers, we would have only 260,000 available full-time roles—and therefore 926,000 drivers would no longer be able to work on Uber going forward. In other words, three-fourths of those currently driving with Uber would be denied their ability to work.

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How much does a Driver make at Uber in California? Average Uber Driver weekly pay in California is approximately $1,201, which is 25% above the national average.

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Are Uber and Lyft drivers self-employed? If you drive for Uber or Lyft, you are self-employed. As a driver for either company, you are an independent contractor rather than an employee. As an independent contractor, you provide transportation services to individuals.

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The initiative became state law after passage in November 2020, was challenged in California state courts in 2021, and was upheld on appeal in 2023. Proposition 22 awaits a California Supreme Court decision on its constitutionality.

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If you used Uber in the U.S. and paid a Safe Rides Fee, you may be entitled to a payment from a class action Settlement. Current Status: On November 30, 2022, the Appeals Court affirmed the Approval Order and the Settlement became effective March 1, 2023.

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The driver must have a valid California driver's license. The driver can also carry a valid out-of-state driver's license if the driver is an active duty member of the U.S. military.

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