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California’s Proposition 22 (Gig Workers’ Law), which allows companies like Uber and Lyft to treat workers as independent contractors— not employees— has been ruled unconstitutional and unenforceable, by Max Breall.
2021-08-24
California’s Proposition 22 (Gig Workers’ Law), which allows companies like Uber and Lyft to treat workers as independent contractors - not employees - has been ruled unconstitutional and unenforceable.
On August 20, 2021, a California Superior Court ruled that the law illegally “limits the power of a future legislature to define app-based drivers as workers subject to workers’ compensation law,” adding that “The entirety of Proposition 22 is unenforceable.” The Court also ruled that it was unconstitutional in that the law required any future amendments to have a seven-eighths vote of approval to pass the legislature.
If Proposition 22 ultimately gets overturned by the Court of Appeal and/or the Supreme Court, it will have a profound effect on the workers’ compensation system and will change the gig economy as we see it today.
To read the Order, click here.
