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After nearly four years of court battles, Proposition 22—also known as the Protect App-Based Drivers and Services Act—has been upheld by the California Supreme Court. The voter-enacted law allows drivers for app-based transportation and delivery companies—also known as “network companies”—to be classified as independent contractors, as long as several conditions are met.
In January 2020, Assembly Bill No. 5 (AB-5)—the landmark bill that created a streamlined test for determining which workers are independent contractors—took effect. AB-5 codified the “ABC test” set forth by the California Supreme Court in Dynamex Operations West, Inc. v. Super.