Ride-share companies scored a goal A victory in the California Supreme Court allowed them to continue to classify gig workers as independent contractors rather than employees. Uber, Lyft, DoorDash and other gig-economy companies have invested nearly $200 million. Adoption of Proposition 22voters approved it in 2020. The state’s highest court rejected a legal challenge by the drivers’ group and union, ending their quest to bring full employee benefits to the state’s gig workers.
A California Supreme Court ruling upholds the state’s definition of drivers and other gig workers as independent contractors. Proposition 22, which received the support of 59 percent of voters in 2020, gives gig workers limited benefits such as a basic income and health insurance for those who work at least 15 hours a week. However, it also allows companies to avoid providing a large portion of the benefits that full-time employees receive.
Service Employees International Union and drivers group went to court to challenge the law After entry into force in early 2021. Their case received early support from the lower courts: an Alameda County Superior Court judge reigned that year Proposition 22 was “unconstitutional and unenforceable,” according to the LA Times informed. A lower court judge found the law curtailed the state Legislature’s authority to regulate injury compensation for workers.
But in 2023 a state appeals court ruled otherwise, that Proposition 22 did not interfere with the Legislature’s authority. Thursday’s ruling upholds that decision, ending a long saga and leaving the state’s gig workers with fewer benefits than they would otherwise receive. Proposition 22 remained in place during the legal challenges, so nothing will change about them.
Uber, Lyft, DoorDash and other gig-economy companies fought tooth and nail to get the law passed and upheld. Four years ago, they invested more than $200 million in the campaign for it. They even threatened to withdraw their businesses from the state if they were forced to classify drivers as employees.
The LA Times states that the decision may affect the laws of other states. Uber has lobbied for similar laws in other parts of the US. A Washington state law closely parallels it, and the companies recently settled with the Massachusetts attorney general to provide similar (minimal) benefits to gig workers in that state.
Uber framed the ruling as a victory for defending the will of the people (well, except for the gig workers who want more benefits and protections). The company described the Supreme Court decision as “affirming the will of nearly 10 million Californians who voted to provide historic benefits and protections to drivers while protecting their independence.”
