A California appeals court has upheld Proposition 22, cementing the classification of drivers for app-based ride share platforms as independent contractors rather than employees.
This reversed most of a lower court ruling that said Proposition 22, a state ballot measure passed in 2020, was unconstitutional. It became law after being passed in the 2020 state election and remained in effect throughout the appeal process. The measure was voted in with huge donations from the companies who employ these drivers, including Uber, Lyft, DoorDash, Postmates and InstaCart. Campaign finance reports show the five companies contributed a total of more than $200 million to the “Yes on Proposition 22” campaign between Oct. 2019 and Dec. 2020.
“The ruling is a victory for app-based workers and the millions of Californians who voted for Prop. 22,” said Uber chief legal officer Tony West in a statement.
L.A. voters approved Proposition 22 with 55.3% of the vote, which aligns with statewide results.
Uber reported a record 5.4 million active monthly drivers globally in the fourth quarter of 2022. Nicole Moore, a part-time Lyft driver and president of Rideshare Drivers United, said the drivers’ rights organization works with at least 12,000 workers in Los Angeles alone. Moore said that while many voters thought Proposition 22 would provide drivers with rights, it actually took them away and is “deprofessionalizing” their jobs.
Classified as “employees,” gig drivers fell under state wage and hour laws, including benefits such as minimum wage, overtime pay and paid sick time. This is in line with what most other California businesses are required to provide for their employees. Under the classification of “contractor,” app-based drivers are not mandated to receive such benefits.
“The companies lied to the public that one, it was going to keep the prices down for customers, and then second, it was going to be better for drivers,” Moore said. “For drivers, it’s immoral and it’s damaging our families, our livelihoods, our profession, and they shouldn’t have laws like this.”
In the state’s 2020 General Election Official Voting Guide, the argument in support of Proposition 22 stated that drivers needed the flexibility of independent contractor status to attend to their other jobs or family matters.
“Every California voter should be concerned about corporations’ growing influence in our democracy and their ability to spend millions of dollars to deceive voters and buy themselves laws,” David Huerta, president of the Service Employees International Union California, said in a statement.
While Proposition 22 has been upheld, the SEIU and the court’s 132-page decision left open the possibility of a further petition to the California Supreme Court. The court previously declined to hear a lawsuit against the ballot measure from the SEIU and a handful of app-based drivers in 2021.
