In a decision heard around the gig-economy world, the California Supreme Court has ruled that Proposition 22, which classifies rideshare and delivery drivers as independent contractors, may stand.
Proposition 22, which 59 percent of voters approved in a 2020 ballot initiative, provides gig-economy workers some benefits, including 120 percent of the local minimum wage for each hour driving, a health insurance stipend, and reimbursement for job-related injuries, but not employee status, with full benefits and protections. An appellate court reversed it in 2021, citing workers’ comp concerns. But in 2023 it was reversed right back. The State Supreme Court put an end to this statutory do-si-do with its ruling.
The ruling marks a seismic victory for rideshare companies, which had spent an estimated $205 million lobbying for passage. Uber posted a message on its website moments after the decision dropped. “Whether drivers or couriers choose to earn just a few hours a week or more, their freedom to work when and how they want is now firmly etched into California law, putting an end to misguided attempts to force them into an employment model that they overwhelmingly do not want. From the moment it became law, Proposition 22 has been working for the millions of drivers and couriers that earn on platforms like ours. Simply put, Proposition 22 is making a real difference in people’s lives, which is why it is overwhelmingly supported by drivers and couriers from every corner of the state. Proposition 22 is a testament to what can be done when we listen to drivers and couriers.”
Will this decision end the classification discussion everywhere? Not formally. But in a practical sense, probably.
“When you look at the settlements out of Massachusetts in late June, and now this decision, I wouldn’t anticipate any more statewide actions,” said Lindsey Cameron, assistant professor at the Wharton School at the University of Pennsylvania, who has written extensively about the topic. “I think we’re going to see a lot of piecemeal agreements that are settled on a city by city basis.”
