A California appeals court invalidated the state’s 2020 voter-approved Gig Economy Act 22, which allows giant ride-hailing and delivery companies to classify their workers as independent contractors rather than employees.
The 1st District Court of Appeal disagreed with the 2021 ruling, ruling that central provisions of the law conflicted with the state constitution, rendering the law unenforceable and striking it down in its entirety.
However, the Court of Appeal struck down a provision of the Act that restricted certain statutory amendments.
The court found that the ballot measure incorrectly defined what the amendment was in violation of the Constitution’s separation of powers principles. The court struck down provisions of Proposition 22 that restricted the Legislature from making future amendments to the law.
The The judgment of the lower court, Alameda County Superior Court Judge Frank Rosch in August 2021 found the law conflicted with the state constitution by limiting the Legislature’s ability to regulate workers’ compensation rules. The ruling argues that Proposition 22 violates the Constitution and that initiatives should be limited to “a single subject.”
Proposition 22 works through the appeals process.
The Protect App-based Drivers & Services Coalition, which supported Proposition 22, celebrated the ruling as a “historic victory for the freedom and flexibility of income and fairness for the approximately 1.4 million drivers who rely on app-based jobs. California’s initiative organization.”
“The appeals court affirmed the basic principle behind the action,” coalition spokeswoman Molly Weeden said in an email.
A three-judge panel in San Francisco heard the case in December. During the hearing, Judge Tracy L. Brown questioned a provision in the law that restricts amendments to the law on collective bargaining beyond the stated purpose of Proposition 22.
Proposition 22 went into effect in early 2021. Uber, Lyft, DoorDash, Instacart and other app-based companies spent more than $200 million to make the Californian ballot initiative a boon to workers and customers.
For hundreds of thousands of drivers, Proposition 22 Protecting the flexible schedules associated with an independent contractor, but eliminating protections provided by the 2019 law, AB 5, gig workers in many industries must be classified as employees with robust benefits such as minimum wage, overtime and workers’ compensation. injury
