Judge: California ride-hailing law is unconstitutional

LOS ANGELES — A judge Friday struck down a California ballot measure that exempted Uber and other app-based ride-hailing and delivery services from a state law requiring drivers to be classified as employees eligible for benefits and job protections.

Alameda County Superior Court Judge Frank Roesch ruled that Proposition 22 was unconstitutional.

Voters approved the measure in November after Uber, Lyft and other services spent $200 million in its favor, making it the most expensive ballot measure in state history.

Uber said it planned to appeal, setting up a fight that could likely end up in the California Supreme Court.

Proposition 2 shielded app-based ride-hailing and delivery companies from a labor law that required such services to treat drivers as employees and not independent contractors, who don’t have to receive benefits such as paid sick leave or unemployment insurance.

Uber and Lyft threatened to leave the state if voters rejected the measure.

The state Supreme Court initially declined to hear the case in February — mainly on procedural grounds — but left open the possibility of a lower court challenge.