In summary
State’s highest court refuses to overturn voter-backed Prop. 22, a law written by the gig industry. The ruling means gig workers will remain independent contractors.
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In a major victory for gig-work companies, the California Supreme Court today upheld a voter-approved law that allows Uber and other app makers to treat their drivers and delivery workers as independent contractors instead of employees.
The decision on Proposition 22 was unanimous. Approved by 58% of California voters in 2020 and enacted the same year, Prop. 22 gave app-based gig workers some benefits but not full worker protections because the ballot initiative — which gig companies spent more than $200 million to pass — ensures they are not considered employees.
More than 1.4 million Californians are app-based gig workers for companies such as Uber, Lyft, DoorDash and Instacart, according to the industry’s latest estimates.
The court was not considering the pros and cons of the gig economy. During oral arguments in May in San Francisco, justices zeroed in on whether Prop. 22 was incompatible with California law, which gives the Legislature responsibility over a complete workers’ compensation system. By declaring gig workers independent contractors, Prop 22 made them ineligible for workers’ comp benefits. SEIU California, the Service Employees International Union that had sought to overturn the law on behalf of four gig workers, argued that this made the law...
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