What is the new law in California about Uber?

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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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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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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Among other things, the study found that local Uber and Lyft drivers make a median net wage of $6.20 an hour — well below California's minimum wage of $15 an hour.

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Prop 22 was created and promoted by rideshare and delivery companies to exempt their drivers from A.B. 5. Prop 22 passed in November 2020 and included “alternative benefits” for drivers, such as a guaranteed minimum wage and health insurance subsidies for drivers who averaged 25 hours of work a week.

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At the time, Uber was not just one of the world's fastest-growing companies - it was one of the most controversial, dogged by court cases, allegations of sexual harassment, and data breach scandals. Eventually shareholders had enough, and Travis Kalanick was forced out in 2017.

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An Uber driver is never supposed to know the destination until the trip has started. But some drivers are said to be calling passengers in advance and finding out where the passengers want to go, which is against Uber policy.

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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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