App-based ride-hailing and delivery firms do not have to treat their workers as employees in the state of California, a state appeals court has ruled.
The judgment is a major win for gig economy giants that have been fighting against legislation requiring they provide thousands of drivers and couriers employee benefits including paid sick leave, overtime pay, and unemployment insurance.
In 2019, the California legislature passed Assembly Bill 5, which codified the California Supreme Court’s decision in Dynamex v Superior Court.