The state's highest court will hear arguments on a case about whether drivers are independent contractors.
California's highest court is set to hear a case that will decide whether drivers for apps such as Uber and Lyft can be categorized as full-time workers or independent contractors. The companies have suggested in the past that a change in the designation of drivers could make it too expensive for them to operate in America's largest state.
Justices in the state's Supreme Court will listen to oral arguments on a case that challenges a ballot measure approved by voters that deemed that drivers for app-based ride hailing services were independent contractors.The hearing is set to take place on Tuesday in San Francisco.The question in front of the judges is does Proposition 22, which in effect designated drivers for the likes of Uber and Lyft and other apps independent contractors, violates California's constitution and if so should be deemed invalid, as summarized by the court.The ContextIn November 2020, voters in California voted on Proposition 22 that at the core wanted to have drivers for ride hailing apps be categorized as independent contractors. By 58 percent, Californians approved the measure.The passage of the measure in effect meant that the drivers were not going to be considered full-time workers of the app companies with the attendant benefits that would entail, such as employee-based health care. The proposal did include some benefits, such as basic earnings for workers and payments towards drivers health care.'A guarantee of 120 of the applicable minimum wage for 'engaged time' spent on rides or deliveries, health-care subsidies for workers driving 15 hours per week or more, certain vehicle expense reimbursements, and occupational accident insurance for on-the-job injuries,' according to an analysis by law firm Polsinelli.In April 2023, the Service Employees International Union, along with drivers, took their case to the California Supreme Court after a lower court maintained the results of the ballot vote.ViewsOpponents of Proposition 22 have suggested that the case aims to give rights to drivers of ride-hailing services.'More than two years after the passage of Prop 22, gig workers like me across California are still demanding basic rights like paid sick leave, meaningful health benefits, and overtime pay,' Hector Castellanos, an Uber driver and a plaintiff in the case, said last year after the Supreme Court of California agreed to hear the case. 'With Prop 22, the gig companies are violating our constitution and undermining its spirit.'Meanwhile, businesses like Uber and Lyft contend that increased labor costs that might emerge should drivers for their apps be deemed full-time workers may force them to cease operations in the state, CNBC reported prior to the Proposition 22 vote in 2020.An Uber spokersperson told Newsweek that were Proposition 22 to be invalidated, it could lead to the end of ridesharing.'Forced employment would be devastating for the thousands of drivers and couriers who turn to Uber for flexible work and the millions of Californians who would see major service reductions and cost increases—or lose ridesharing and food delivery entirely,' the spokesperson said in a statement.'We are confident that the Supreme Court will listen to the will of California voters and uphold Prop 22.'Newsweek contacted Lyft for comment via email on Tuesday.What's NextThe case will now be heard at the highest court of the Golden State. Oral arguments are scheduled to begin at 1:30 p.m. PDT.
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