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.

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

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