California Supreme Court Upholds Proposition 22

The California Supreme Court delivered a major win to Uber, Lyft, and other companies by upholding Proposition 22, the gig economy bill.

Proposition 22 passed in late November, allowing gig economy companies to classify their workers as contractors rather than employees. The bills passage allowed Uber, Lyft, DoorDash, and others to continue operating within the state, something that was in danger if the companies were forced to classify their workers as employees.

According to The New York Times, California’s Supreme Court has upheld Proposition 22. The measure allows for something of a hybrid approach, classifying workers as contractors while still requiring the companies to offer limited benefits, such as accident insurance and health insurance stipends.

Uber applauded the decision, saying it is widely supported by the company’s drivers:

Prop 22 is Working

From the moment it became law, Prop 22 has been working for the millions of drivers and couriers that earn on platforms like ours. Uber alone has delivered more than $1 billion in direct benefits to date. Simply put, Prop 22 is making a real difference in people’s lives, which is why it is overwhelmingly supported by drivers and couriers from every corner of the state.

Uber also said the decision is evidence of a changing worker landscape, one that is less binary than in the past:

Driving Forward

Prop 22 is a testament to what can be done when we listen to drivers and couriers. With growing frequency, policymakers are shifting away from outdated discussions, based on a binary choice between employment with benefits, or independence with none. Instead, an increasing number of policymakers worldwide—from New York State and Massachusetts, to Australia and Brazil—are actively engaging with drivers and couriers to develop innovative models that preserve their independence while also requiring important new benefits and protections. We stand ready to ensure that progress continues.

The decision will no doubt pave the way for gig companies to prevail in other states that have considered reclassifying gig workers.

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