The California Supreme Court has upheld Proposition 22, which allows gig workers to remain independent contractors while providing them with benefits such as minimum pay standards, health stipends, and accident insurance. This decision confirms the provisions of the 2020 ballot measure for gig work drivers.
According to a press release by the California Chamber of Commerce, upholding Proposition 22 ensures that app-based rideshare and delivery drivers remain classified as independent contractors. This classification preserves their flexible work options while mandating certain benefits such as minimum wage guarantees and health coverage. The ruling also helps mitigate the legal uncertainties and costs associated with determining independent contractor status under California law. Proposition 22, initially passed by voters in 2020, was previously invalidated by a lower court but later reinstated by an appeals court before being confirmed by the Supreme Court.
Chamber of Progress reported that if Proposition 22 had been invalidated, California would have reverted to Assembly Bill (AB) 5, which mandates reclassifying many independent contractors as employees. According to a Chamber of Progress analysis, adopting AB 5-style regulations nationwide could lead to job losses for 3.4 million American workers, significantly reducing work opportunities.
“This is a huge win for the California voters and drivers who passed Prop 22 by a historic margin,” said Chamber of Progress CEO Adam Kovacevich. “Rideshare drivers want to be their own boss and set their own schedule. That’s a top benefit of the job and this decision protects that independence. With New York, Massachusetts, Washington, and California all now agreeing on independent work for drivers, this really settles the question of gig worker classification.”
Chamber of Progress is a tech industry coalition promoting a progressive society, economy, workforce, and consumer climate. It advocates for policies that aim to build a fairer and more inclusive nation through advancements in technology.
