The recent ruling by the California Supreme Court marks the end of a years-long legal battle over Proposition 22, a measure that created a new classification for workers in the gig economy. This classification entitles workers to limited benefits but does not grant them the full array of rights afforded to traditional employees. In November 2020, nearly 60% of California voters approved Prop 22, allowing app-based rideshare and delivery drivers to remain independent contractors while also receiving new benefits such as guaranteed earnings and access to a health care stipend.
Major companies like Uber, Lyft, and DoorDash heavily invested in the campaign to promote Prop 22, pouring over $200 million into the effort. Their goal was to ensure that app-based drivers could continue to work as independent contractors while still receiving some benefits and protections. The recent decision to uphold Prop 22 was met with celebration by these gig companies, as it means that drivers can maintain their flexibility in setting their own hours and earning income.
Stephanie Whitfield, an Instacart shopper based in Coachella Valley, California, expressed relief and gratitude following the court’s ruling. She emphasized the importance of maintaining the independence and flexibility that Prop 22 provides to drivers. A survey conducted by The Mellman Group in December 2023 found that California app-based drivers overwhelmingly support the law and prefer to remain independent contractors.
Uber released a statement praising the decision and highlighting the importance of listening to drivers and couriers when shaping policies. The company emphasized the need for innovative models that preserve workers’ independence while also providing essential benefits and protections. The ruling was also hailed as a victory for voters’ rights and the integrity of California’s initiative system by Protect App Based Drivers + Services spokeswoman Molly Weedn.
Despite the favorable ruling for gig companies, the debate over worker classification and benefits is far from over. The International Brotherhood of Teamsters, represented by General President Sean M. O’Brien, expressed disappointment in the court’s decision. The organization believes that all workers, regardless of their employer, deserve basic protections such as overtime pay, paid sick leave, and unemployment insurance.
In conclusion, the ruling on Prop 22 in California has significant implications for the gig economy and the rights of app-based workers. While some celebrate the decision as a win for flexibility and independence, others continue to advocate for greater protections and benefits for workers in this sector. The debate over worker classification and benefits is likely to persist as the gig economy continues to evolve.
