California Supreme Court Upholds Proposition 22 for Gig Workers

SACRAMENTO – In a landmark decision, the California Supreme Court unanimously upheld Proposition 22, allowing app-based drivers to maintain their status as independent contractors rather than employees. The proposition, which garnered 58% support in the 2022 election, provides certain benefits to gig workers, including a guaranteed minimum wage and health insurance subsidies for those working an average of 25 hours per week. The measure was heavily backed by major app-based companies like DoorDash, Lyft, and Uber, which collectively invested $200 million in its support. The legal battle surrounding Proposition 22 began with a lawsuit filed in 2021, claiming the measure was unconstitutional as it restricted the state legislature's ability to grant workers the right to organize and excluded drivers from workers' compensation eligibility. Critics of the proposition argued that gig companies effectively "bought" their own law, as the measure was largely crafted by Uber and Lyft, with support from other delivery services like DoorDash and Postmates. In May, prior to the court's decision, a group of ride-share and delivery drivers rallied outside the California Supreme Court, voicing their concerns over the implications of the proposition. A recent study from UC Berkeley's Labor Center highlighted the financial struggles of gig drivers, revealing that many earn less than minimum wage after expenses. The study indicated that ride-share drivers average $5.97 per hour before tips, while meal delivery drivers earn about $4.98 per hour before tips, raising questions about the sustainability of gig work in California.