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Uber, Lyft Win California Bid to Keep Drivers as Contractors

  • Companies spent some $200 million on their ballot campaign
  • Uber, Lyft’s shares soar in pre-market New York trading
California Uber Drivers Bring First Suit Under New Labor Law
Photographer: Allison Zaucha/Bloomberg
Updated on

Gig economy giants including Uber Technologies Inc., Lyft Inc. and DoorDash Inc. have won their effort to pass a hotly contested ballot measure that will exempt the companies from a state law requiring them to classify most of their workers as employees.

Uber and Lyft soared more than 14% in pre-market trade after California voters, in the most expensive ballot initiative in state history, approved a ballot measure exempting gig-economy companies from the state labor law known as A.B. 5. Almost 58% of voters were supporting the proposition versus 42% against, with more than 80% of the vote reported, according to the California Secretary of State’s Office.