Proposition 22, a ballot measure passed by state voters in 2020 that classifies Uber and Lyft drivers as independent contractors rather than employees, should remain state law, a California appeals court said Monday.
The decision by the three appeals court judges overturned a ruling last year by a California Superior Court judge who said the proposal was “unenforceable.” It’s a win for companies like Uber, which use gig drivers to ferry passengers and deliver meals but don’t pay the fees that employers have to pay. These costs may include the driver’s unemployment insurance, health insurance and business expenses.
Still, the decision of the appeals court is not final. Service Employees International Union, which joined several drivers in its lawsuit against Proposition 22 in early 2021, is expected to appeal the decision to the California Supreme Court, which will have several months to decide whether to hear the case.
The judge overruled lower court Judge Frank Roesch’s decision in August 2021 to dismiss the proposal, setting the stage for a protracted, high-stakes legal battle that will determine several Work regulations for 100,000 California drivers.
Opponents of the proposal argue that the ballot measure is unconstitutional for several reasons. It limits the ability of state legislatures to oversee worker compensation for gig drivers. It includes a rule limiting them to collective bargaining that critics say is irrelevant to the rest of the measure, and it sets a seven-eighths majority in the Legislature as an amendment to pass the measure related to collective bargaining Obstacles—requirements considered nearly impossible to achieve.
The three appeals court judges, who heard oral arguments in the case in San Francisco in December, dissented on two of the three points but agreed to require collective bargaining by amending a proposal that “violates the principle of separation of powers” and ordered Separate that provision from the rest of the ballot measure.
“The appropriate remedy,” the justices wrote, is to cut off that section, “and leave the remainder of Proposition 22 in effect, as voters desire.”
This is a developing story. Check for updates.
