The California Supreme Court has rendered a definitive decision that cements the status of gig workers like Uber and Lyft drivers as independent contractors under Proposition 22.
The Washington Examiner reported that in a landmark ruling, the California Supreme Court has upheld the voter-approved Proposition 22, which keeps gig workers classified as independent contractors.
The saga of Proposition 22 began with its introduction as a counter to Assembly Bill 5, which aimed to provide employee benefits to various contract workers.
The proposition emerged as an essential exception, specifically crafted for gig workers, allowing companies like Uber, Lyft, and DoorDash to operate with more flexibility in managing their workforce.
In November 2020, the California electorate voiced their opinion, with 58.6% voting in favor of Proposition 22.
This majority vote highlighted the public's support for the gig economy's business model, which offers flexibility and independence to its workers.
However, the journey for Proposition 22 was not smooth. Following its approval, legal challenges questioning its constitutionality soon emerged, leading to a series of court battles that scrutinized the legality of this measure.
The first significant challenge came in August 2021, when a state superior court ruled Proposition 22 unconstitutional.
This decision was a blow to companies relying on gig workers but was not the final say on the matter.
Responding to this, a state appellate court reviewed the case and in March 2023 overturned the lower court's decision, declaring Proposition 22 lawful and setting the stage for the next and final phase of legal scrutiny.
The case escalated to the California Supreme Court, which delivered a unanimous verdict. On a Thursday, the court upheld the appellate court's ruling, confirming that Proposition 22 did not conflict with the state constitution.
Justice Goodwin Liu, who authored the court's opinion, articulated that the measure aligns with the legal framework of the state, stating, "We affirm the judgment of the Court of Appeal insofar as it held that Business and Professions Code section 7451 does not conflict with article XIV, section 4 of the California Constitution."
The ruling was met with significant approval from the gig economy's major players. Companies like Uber, Lyft, and DoorDash, which had vigorously supported Proposition 22, viewed the decision as a victory for the business model they advocate.
Molly Weedn, a representative for the coalition backing Proposition 22, remarked, "The California Supreme Court ruling is an overwhelming victory for voters’ rights and the integrity of our state’s initiative system."
Further, she highlighted the broader impact of this decision, "This ruling is not just a win for the nearly 1.4 million drivers who rely on the flexibility of app-based work to make ends meet but for millions of consumers and thousands of businesses who rely on app-based services across the state. The courts have spoken, and this issue can finally be put to rest."
In conclusion, the California Supreme Court's decision to uphold Proposition 22 concludes a contentious chapter in the state's legal and labor history.
This decision reaffirms the 2020 voter-approved measure that distinctly classifies gig workers as independent contractors, distinct from traditional employees, providing them with specific benefits while maintaining their flexibility.
The unanimous decision underscores the judiciary's support for voter-approved initiatives and likely puts an end to the legal disputes surrounding Proposition 22.
