BOSTON, June 27 (Reuters) - Massachusetts's top court on

Thursday cleared the way for voters in the state to decide

whether drivers for app-based companies like Uber Technologies ( UBER )

and Lyft ( LYFT ) should be classified as independent

contractors who would be entitled to some new benefits but would

not be legally employees.

The Massachusetts Supreme Judicial Court rejected a

labor-supported challenge to an industry-backed coalition's

proposal to cement the drivers as contractors. But it also said

it would allow a dueling ballot measure that would allow the

drivers to unionize to move forward.

(Reporting by Nate Raymond in Boston)