On Friday August 20th, Alameda Superior Court Judge Frank Roesch ruled that two sections of California’s Proposition 22 are unconstitutional, rendering the measure unenforceable. Prop. 22, which defined app-based delivery and rideshare drivers as independent contractors rather than employees, circumventing AB5‘s definitions of employment classifications, was a boon to many companies like Uber, Lyft, Doordash, and other app-based platforms. While the bill’s proponents have promised to appeal, this ruling could impact employers with gig workers, requiring them to offer benefits as employees, including workers’ compensation coverage as well as other employment rights. Opponents of the legislation are cautiously optimistic, and organizations like the Service Employees Internation Union (SEIU), which filed a lawsuit challenging Prop. 22, will likely see this as a step toward protecting workers’ rights.
SRTK will continue to monitor these developments. As always, if you have questions about what these regulations or other developments may mean for you or your cases, please contact our offices.