California Supreme Court upholds Prop. 22, ending legal saga over status of gig drivers

The California Supreme Court on Thursday upheld Proposition 22, the voter initiative that allows Uber, Lyft and other gig economy companies to classify drivers for their ride-hailing and delivery services as independent contractors rather than as employees.

In a unanimous decision released Thursday morning, the state’s top court rejected claims brought by a group of drivers and unions that the law is unconstitutional because it interferes with lawmakers’ authority over matters dealing with worker compensation.

The ruling, which was expected following a lopsided hearing in the case in May, marks the end of a years-long legal fight over Proposition 22, which essentially carved out a new classification for workers who are entitled to limited benefits but not the array of rights granted full-fledged employees.

In a major victory for gig-work companies, the California Supreme Court today upheld a voter-approved law that allows Uber and other app makers to treat their drivers and delivery workers as independent contractors instead of employees.

The decision on Proposition 22 was unanimous. Approved by 58% of California voters in 2020 and enacted the same year, Prop. 22 gave app-based gig workers some benefits but not full worker protections because the ballot initiative — which gig companies spent more than $200 million to pass — ensures they are not considered employees.

More than 1.4 million Californians are app-based gig workers for companies such as Uber, Lyft, DoorDash and Instacart, according to the industry’s latest estimates.

https://calmatters.org/economy/2024/07/prop-22-california-gig-work-law-upheld/

APP-BASED DRIVERS OVERWHELMINGLY SUPPORT PROPOSITION 22

By a 4:1 margin, surveys show app-based drivers want to work as independent contractors. Eighty percent work under 20 hours per week, and a majority work under 10 hours per week. Parents who need flexible work around kids’ schedules, people in need of extra income, families caring for sick or aging loved ones, and students earning around classes.

But the politicians and special interests behind the opposition to Prop. 22 cynically claim they know what’s best for drivers. They passed state legislation that threatens to make it illegal for drivers to work as independent contractors.

That’s why drivers support Prop. 22—to protect their flexible earning opportunities and save hundreds of thousands of jobs.

PROP. 22 SAVES APP-BASED JOBS & SERVICES

Prop. 22 protects drivers’ choice to work as independent contractors. Prop. 22 preserves delivery services that millions rely on for safe access to food and groceries and rideshare that improves mobility and keeps drunk drivers off our roads.

PROP. 22 REQUIRES COMPANIES TO PROVIDE DRIVERS HISTORIC NEW BENEFITS

• Earnings guarantee of at least $21 per hour.

• Health care benefits at 15 hours per week.

• Insurance for injuries on the job.

• Strengthening protections against discrimination and harassment.

PROP. 22 ADDS STRICT NEW CONSUMER SAFETY PROTECTIONS

Prop. 22 provides for: strict ongoing driver background checks
• zero tolerance for drug and alcohol offenses
• making it a crime to impersonate a driver.

https://vigarchive.sos.ca.gov/2020/general/propositions/22/arguments-rebuttals.htm

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