Judge rejects Prop. 22, California's gig-worker exemption backed by Uber, Lyft
A judge late Friday shot down a law that would have allowed app-based companies to continue treating drivers as contractors instead of employees in California, ruling unconstitutional a proposition passed by voters in 2020 after a record-breaking campaign.
A spokesman for a group that represents gig company interests, the Protect App-Based Drivers & Services Coalition, said that they will appeal and the the ruling will be stayed when they file, which would maintain Prop. 22 rules that are in effect while the appeal moves through the system. Uber, Lyft and other gig companies have attempted to use Prop. 22 as a model for new regulation across the U.S., including a recent effort to establish similar rules in Massachusetts. The companies are trying to establish a “third way” for employment, in which drivers are treated as contractors but are offered the potential for some benefits under certain conditions.
“A prohibition on legislation authorizing collective bargaining by app-based drivers does not promote the right to work as an independent contractor, nor does it protect work flexibility, nor does it provide minimum workplace safety and pay standards for those workers,” Roesch wrote. “It appears only to protect the economic interests of the network companies in having a divided, ununionized workforce, which is not a stated goal of the legislation.
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