A San Francisco appellate court panel wrestled Tuesday with how to balance the Legislature’s authority to enact labor laws with the rights of Californians who approved a 2020 ballot measure classifying app-based drivers as independent contractors.

At issue in Castellanos v. State of California is the future of Proposition 22, the initiative backed by DoorDash, Lyft and Uber that exempted those companies’ workers from 2019 legislation making them employees entitled to overtime pay, sick leave and other workplace benefits. Last year, Alameda County Superior Court Judge Frank Roesch sided with plaintiffs in finding Prop 22 violated California’s single-subject rules for initiatives and impeded the Legislature’s authority to oversee California’s workers compensation system.

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