State’s highest court refuses to overturn voter-backed Prop. 22, a law written by the gig industry. The ruling 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.
The law about the Legislature and worker’s comp “does not preclude the electorate from exercising its initiative power to legislate on matters affecting workers’ compensation,” Justice Goodwin Liu wrote in today’s ruling. 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,William Gould, professor emeritus at Stanford Law School and a former chairman of the National Labor Relations Board, called the ruling “an enormous setback for workers who are marginalized.
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.
A driver in Coachella Valley who participated in the industry group’s press conference today, Stephanie Whitfield, said she has relied on her income from driving to supplement her substitute-teaching income, especially after having major back surgery.
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