US: California’s Prop 22 Worker Classification Law Struck Down

The Proposition 22 law that provides for certain gig workers to be considered independent contractors has been ruled unconstitutional by a California Superior Court judge. Almost 59% of Californians voted to pass the law last year. The proposition establishes standards under which drivers for app-based rideshare and food delivery services would not be considered employees under AB 5, California’s strict worker classification law enacted in 2019, and therefore would not be entitled to certain benefits available to employees under California law.

The judge ruled the proposition unconstitutional and unenforceable due to the nature of the law, preventing future legislatures from being able to define app-based drivers as workers who are subject to workers’ compensation laws. Multiple organizations that supported the proposition have already stated their intentions to appeal the decision.

Takeaway: The ruling came as a surprise to many gig workers and app-based services that hire them, particularly for an issue that was considered settled by the passage of Proposition 22. While subsequent appeals may overturn the ruling, the development underscores the need for vigilance in staying ahead of the constantly evolving regulatory environment.

North America

US: Department of Labor Announces Final Rule on Joint Employment Regulation

US: New York City Fair Chance Act Amendments in Effect

Canada: Pay Equity Act Aims to Close Gender Gap in the Workforce


UK: Flexible Working Model Will Not Apply to Financial Services

UK: Umbrella Company Update: New Government Proposals Amid Calls for Total Ban

UK: Single Worker Status Proposed by Labour Party

EU: Whistleblower Protection Directive Laws Coming Late 2021


Australia: Surprise Ruling Strengthens Employers’ Say in Casual Worker Classifications

China: New Laws Protect the Rights of Flexible Workers

India: Companies Advised to Build Comprehensive Work-From-Home Policies

Singapore: Government Commits to Supporting Women’s Equality in the Workforce

This update contains general information only, and AGS is not rendering legal advice. Before making any decision or taking any action that may affect your business, you should consult qualified legal counsel. AGS shall not be responsible for any loss whatsoever sustained by any person or company who relies on this update.