Business Insurance

Login  |  Register Subscribe



California’s gig worker Prop 22 ruled unconstitutional by superior court

In a late Friday night blow to Uber, Lyft and other gig worker-centered companies, a superior court judge ruled that California’s Proposition 22, which was passed in 2020 and designed to overrule the state’s controversial AB-5 law on the employment status of gig workers, violates the state’s constitution. Gig worker bill, AB-5, passes California State […]

In a late Friday night blow to Uber, Lyft and other gig worker-centered companies, a superior court judge ruled that California’s Proposition 22, which was passed in 2020 and designed to overrule the state’s controversial AB-5 law on the employment status of gig workers, violates the state’s constitution.

Gig worker bill, AB-5, passes California State Senate

Frank Roesch, a superior court judge in Alameda County, which encompasses Oakland, Berkeley and much of the East Bay, ruled that the law would limit “the power of a future legislature” to define the employment status of gig workers. The lawsuit was filed by the Service Employees International Union (SEIU) in January, after a similar lawsuit was rebuffed by the California Supreme Court and referred to a lower court.

The court’s decision will almost certainly be appealed and further legal arguments are to be expected.

The superior court’s decision is just the latest in a long line of victories and defeats in the battle between companies that heavily rely on gig workers like Uber and DoorDash, and unions and advocates representing workers. Much of the debate centers on the legal distinction between a freelancer and an employee, and to what extent companies are responsible for the care and benefits of their workers.

Such a distinction is big business: Uber, Lyft and other companies spent more than $200 million collectively to push Prop 22 to victory last year. California voters passed the proposition roughy 59% to 41% in what was widely perceived as a major victory for gig worker platforms.

Such fights are not limited to merely Silicon Valley’s home state, however. Earlier this year in the United Kingdom, Uber lost a legal battle over its employment classification decisions and ultimately reclassified tens of thousands of its drivers as workers, a decision which offered them a range of benefits not previously guaranteed.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.

Business Insurance Webinars & Webcasts

August 12: "Get Retrofit: Insurance Savings from Property Upgrades"

August 7: "Friends & Foes: Best Practices for Social Media Risk Management"

August 17: "Supply Chain Crisis?Navigating Business Interruption Coverage and Claims After the Japanese Earthquakes"

September 8: "Dormant Dangers: Protecting Key Corporate Assets from Cyber Attacks"

View all webcasts & webinars


Business Insurance Upcoming Issues

Aug. 22/29: Industry Financials: First-Half Results
Health Care Reform: Impact on Firms

September 5: Special Report: Alternative Risks

September 12: Workers Comp & Safety Management

View editorial calendar
Subscribe to Business Insurance