California 'Gig Worker' Ballot Ruled Unconstitutional

A California voter-approved referendum that lets many "gig workers" be treated as independent contractors was ruled unconstitutional on Friday, setting up more legal fights over the controversial measure.

The labor legislation known as Proposition 22 -- heavily backed by Uber, Lyft and other app-based, on-demand services -- effectively overturned a California law requiring them to reclassify their drivers and provide employee benefits. Yet an Alameda County Superior Court judge ruled the law violated California's state Constitution because it "limits the power of a... legislature to define app-based drivers as workers subject to workers' compensation law." Uber attacked the decision and pledged to challenge it, while some workers impacted by the rule welcomed the judgement as an opportunity to fight for better treatment.