The California Supreme Court on July 25 upheld the state's Proposition 22, which made app-based workers for ride-hailing and delivery companies—such as Uber, DoorDash, and Instacart—independent contractors with some benefits, rather than full-fledged employees. We’ve gathered articles on the news from SHRM Online and other outlets.
The court’s decision on Proposition 22 was unanimous.
Approved by 58% of California voters in 2020 and enacted the same year, Proposition 22 gave app-based gig workers some benefits, but not full worker protections, because the ballot initiative ensured they are not considered employees.
More than 1.4 million Californians are app-based gig workers, according to the industry’s latest estimates.
The decision capped a yearslong battle between the Service Employees International Union (SEIU) and gig companies over the status of workers who are dispatched by apps to deliver food, buy groceries, and transport customers. A 2018 California Supreme Court ruling and a follow-up bill would have compelled the companies to treat those workers as employees.
A group of five gig companies then spent more than $200 million to defeat that mandate by getting Proposition 22 approved by voters.
In a statement, SEIU leaders said they were “disappointed” in the ruling but would continue to fight for a ride-hail driver union to advocate for further rights and protections.
(Politico)
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