Uber, Lyft-Backed California Labor Law Faces Final Court Test

A California labor law classifying Uber Technologies Inc. and Lyft Inc. drivers as independent contractors instead of employees reaches its final legal hurdle on Tuesday when the state Supreme Court hears arguments on the constitutionality of the voter-approved statute.

The gig economy’s fate hangs in the balance: On one end is the business model behind Uber, Lyft, and DoorDash Inc., which poured more than $200 million into their campaign to keep drivers classified as independent contractors.

On the other is the ability of over a million gig workers in California to receive employee benefits such as overtime pay and ...