California Prop 22 Ruled Unconstitutional - Gig Worker Law
California's Proposition 22 Ruled Unconstitutional
A recent ruling by a California superior court judge represents a significant setback for Uber, Lyft, and other companies dependent on gig workers. The court determined that Proposition 22, enacted in 2020, is in violation of the state's constitution.
The Ruling and Its Implications
Judge Frank Roesch, presiding in Alameda County, asserted that the law unduly restricts the ability of future legislative bodies to define the employment status of gig workers. This decision stems from a lawsuit initially filed by the Service Employees International Union (SEIU) in January.
The initial filing followed the dismissal of a similar case by the California Supreme Court, which then directed the matter to a lower court for review.
An appeal of this superior court decision is anticipated, suggesting further legal challenges are likely to unfold.
SEIU's Response
Bob Schoonover, president of SEIU California State Council, released a statement affirming the ruling. He declared that Proposition 22, funded by the gig industry, was demonstrably unconstitutional and therefore unenforceable.
Schoonover emphasized that drivers have consistently maintained that financial influence cannot supersede democratic principles, a sentiment validated by the court’s decision.
The Broader Context of Gig Worker Classification
This ruling is the latest development in an ongoing struggle between companies utilizing gig workers – such as Uber and DoorDash – and the unions and advocacy groups representing those workers.
Central to this debate is the legal differentiation between independent freelancers and employees, and the extent of corporate responsibility regarding worker benefits and protections.
Financial Stakes and Voter Support
The financial implications of this distinction are substantial. Companies invested over $200 million in the campaign to pass Proposition 22.
Despite this significant investment, California voters approved the proposition with approximately 59% support, initially appearing as a major win for gig worker platforms.
International Precedents
Similar disputes are not confined to California. In the United Kingdom, Uber faced a legal defeat concerning its employment classifications earlier this year.
Consequently, Uber was compelled to reclassify tens of thousands of drivers as workers, thereby extending benefits previously unavailable to them.
This article was updated on August 20, 2021, to incorporate a statement from the SEIU.
