California Supreme Court rules ABC independent contractor test can apply retroactively (San Francisco Chronicle)

The California Supreme Court ruled the state’s ABC test that aims to get tough on independent contractor misclassification can apply retroactively; the decision represents a potential difficulty for some firms that use independent contractors despite Proposition 22, the San Francisco Chronicle reported. Uber Technologies Inc. (NYSE: UBER) and Lyft Inc. (NASDAQ: LYFT) had backed Proposition 22, which allows them to continue classifying drivers as independent contractors. Voters approved Proposition 22 in November, but the new law won’t protect the companies retroactively.