A U.S. court has ruled that "gig" economy giants including Uber and Lyft can continue treating their workers as independent contractors in the state of California.

BBC News reports that the California appeals court found a labor measure, known as Proposition 22, was largely constitutional. Labor 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 March 13, 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.

The Service Employees International Union, which challenged the constitutionality of Proposition 22 with several drivers, said it was considering appealing against the court's decision.