A lengthy legal battle that threatened to upend California's gig worker economy has come to an end. We're happy to report California Supreme Court justices ruled unanimously to uphold BizFed-supported Proposition 22, which empowers ride-share providers to classify drivers as "independent contractors." That ensures workers can continue to benefit from opportunities in the gig economy. Prop 22 enables gig economy companies – including BizFed members Lyft and DoorDash – to maintain business models that benefit both gig workers and consumers.
Prop 22, which passed with nearly 60% of the vote in 2020 following a coordinated business community campaign, created a new classification of workers to keep up with the growing gig economy. These independent contractors are entitled to some employee benefits, but not the same scope granted to full-time employees. Opponents argued the workers' comp element of Prop 22 rendered the entire law unconstitutional.
The Protect App-Based Drivers + Services Coalition issued a statement calling today's decision a "historic ruling" that protects a measure "overwhelmingly supported" by California voters. It's not just a victory for voters and employers. It's also a win for drivers who can continue to enjoy the expanded benefits and flexibility provided by Prop 22.
This decision keeps ride-share companies and the economic activity they generate in California and ensures we can all continue to benefit from their services.
Not much will change for you as a customer or passenger, since Prop 22 remained in effect throughout the legal challenge. However, this ruling could set impactful precedent for gig workers across the nation. Proponents of Prop 22 have backed efforts to pass similar laws in other states, which could see renewed momentum on the heels of this unanimous California Supreme Court ruling. Remember – the ripple effects of your business advocacy are felt far beyond Southern California.Â
