Hey everyone! Today we’re diving into an ongoing legal issue in California that could significantly impact gig workers. The state’s highest court has agreed to hear a challenge to Proposition 22, the 2020 ballot measure that classified gig workers as independent contractors, not employees.
Some background info: a group of union-supported drivers requested in April that the California Supreme Court review their case. They’re hoping the court will overturn a March appeals court ruling that allowed Proposition 22 to stand as state law—a ruling seen as a big win for the ride-hailing and food delivery industries.
Gig driver Hector Castellanos, one of the plaintiffs, is hopeful about the case, expressing gratitude for the court’s review and a desire for dignity and respect for gig workers. The date for oral arguments hasn’t been set yet, but the Protect App-Based Drivers and Services Coalition, which supports Proposition 22, remains confident that the court will uphold it.
One key argument from the drivers’ side is that Proposition 22 might violate the California Constitution’s requirement for the legislature to enforce a complete workers’ compensation program. If supporters of Proposition 22 wanted to change employment benefits law, the drivers argue, they should’ve done so through a constitutional amendment.
Lawyers for the PADS coalition argue that voters and the legislature have co-equal power to enact policies, as the Supreme Court has previously held. So, they say, Proposition 22 is in line with the constitution. But with the Supreme Court agreeing to hear the case, it might extend the already long fight over how to classify gig workers.
Remember back in 2018 when the California Supreme Court made it harder for companies to hire workers as independent contractors rather than employees? That led to the legislature passing Assembly Bill 5, which redefined an employee as a worker who performs duties central to a company’s business. Gig companies pushed back hard against that bill and responded with Proposition 22.
Uber and Lyft and other gig companies spent a record-setting $200 million promoting Proposition 22, and voters approved the measure in November 2020. The measure exempted app-based gig workers, like DoorDash and InstaCart drivers, from state laws requiring businesses to hire more workers as employees.
This isn’t the first time gig workers and their union backers have taken the state to court over Proposition 22, arguing that it interferes with the state’s ability to oversee the workers’ compensation system. A judge even agreed with them in August 2021, ruling that the law was unenforceable and unconstitutional. However, appellate justices in March said that Prop. 22 didn’t violate the Legislature’s power over workers’ compensation.
This saga is far from over, and we’ll be keeping a close eye on developments. As always, don’t hesitate to reach out if you have questions or need more info. We’re all in this together!
