07-31-2024
Uber, Lyft, and DoorDash cheered the recent decision from California's highest court upholding Proposition 22. Passed by voters in 2020, the proposition classified gig workers as independent contractors and gave them limited benefits, such as health care stipends and accident insurance. These workers will not get the usual employee benefits, like minimum wage, sick leave, overtime, and workers' compensation. The law applies to the more than 1.4 million California drivers for Uber, Lyft, DoorDash, and others.
A group of drivers and a primary labor union challenged the proposition, arguing it was unconstitutional. The state constitution makes the legislature the primary authority to regulate its workers' compensation system. Proposition 22 does not include workers' compensation as a benefit. The California Supreme Court considered whether the proposition was unconstitutional under state law because it regulated workers' compensation for independent contractors. A trial judge had ruled the measure was unconstitutional, but three appellate judges overturned that ruling. A unanimous California Supreme Court did not interpret the law as directly preventing workers from receiving workers' comp. It noted that legislators could decide independent contractors are eligible for protection under that system. Moreover, the state constitution does not prevent voters from passing initiatives on this issue.
The companies assert the independent contractor classification gives gig workers flexibility and guarantees them some benefits even though they are not employees. The law had remained in effect while it wound through the courts. The companies had threatened to shut down in California if the Supreme Court struck down the law. Gig workers have vowed to keep fighting to win "union rights and bring these companies to the bargaining table."