California’s highest court refuses to overturn voter-backed Prop. 22, a law written by the gig industry. It means gig workers will remain independent contractors.
Ride-share drivers of the California Gig Workers Union at a press conference outside the Supreme Court of California in San Francisco on May 21, 2024. The state Supreme Court heard oral arguments on Prop. 22, a ballot initiative that allows companies, such as Uber and Lyft, to classify drivers as independent contractors. Photo by Juliana Yamada for CalMattersState’s highest court refuses to overturn voter-backed Prop. 22, a law written by the gig industry.
More than 1.4 million Californians are app-based gig workers for companies such as Uber, Lyft, DoorDash and Instacart, according to the industry’s latest estimates. in San Francisco, justices zeroed in on whether Prop. 22 was incompatible with California law, which gives the Legislature responsibility over a complete workers’ compensation system. By declaring gig workers independent contractors, Prop 22 made them ineligible for workers’ comp benefits.
Gig companies backed Prop. 22 in 2020 to win themselves an exclusion from a new state law known as Assembly Bill 5, which would have upended their business models by requiring them to consider their drivers and delivery workers as employees. Last month,Under Prop. 22, gig workers are promised guaranteed minimum earnings of 120% of minimum wage, health care stipends, occupational accident insurance and accidental death insurance.
The health care stipends are for certain eligible workers only, excluding those who qualify for public assistance, including Medi-Cal.Gig workers are reimbursed for their mileage, although at less than the IRS-mandated rate employees receive — currently 35 cents a mile vs. 67 cents a mile. But this amount is included in the minimum earnings guarantee — it is not in addition to it.
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