The California appeals court found that a labour measure, known as Proposition 22, was largely constitutional.
Labour groups and some workers had opposed the measure, saying it robbed them of rights like sick leave.
The firms say the proposition protects other benefits such as flexibility.
The latest ruling overturns a decision made by a lower court in California in 2021, which found that Proposition 22 affected lawmakers' powers to set standards at the workplace.
The state of California and a group representing Uber, Lyft and other firms appealed against the decision.
On Monday, a three-judge panel at the appeals court ruled that workers could be treated as independent contractors. However it removed a clause, which put restrictions on collective bargaining by workers, from Proposition 22.
Shares in Uber and Lyft were almost 5% higher in after-hours trading.
"Today's ruling is a victory for app-based workers and millions of Californians who voted for Prop 22," Tony West, chief legal officer at Uber said.
[...] Tens of millions of people work in the global gig economy across services like food delivery and transport.
Gig workers are paid for individual tasks, such as a food delivery or a car journey, rather than getting a regular wage.
Most US federal and state labour laws, such as those requiring a minimum wage or overtime pay, do not apply to gig workers.
Previously:
NYC Court Blocks Pay Raise for Uber and Lyft Drivers
Uber, Lyft Drivers In California To Remain Independent Contractors
California Appeals Court Says Uber, Lyft Drivers are Employees, Not Contractors
California Judge Rules Uber and Lyft to Immediately Classify Drivers as Employees
California Sues Uber and Lyft, Alleging Drivers are Misclassified
Uber, Lyft Poised to Lose Fight Against California Bill That Would Label Drivers as Employees
(Score: 0) by Anonymous Coward on Thursday March 16 2023, @03:23AM
Yeah. Only the good die young, and all that. Apparently, I wasn't one of the good ones.