A spokesperson for the Silicon Valley Leadership Group (SVLG) said in a July 30 statement that in upholding Proposition (Prop) 22, which classifies app-based workers as independent contractors rather than employees, the California Supreme Court has rightly supported “the will of California voters,” who approved the measure in 2020.
“App-based rideshare and food delivery drivers provide convenient access to consumers for mobility, prepared meals and fresh groceries,” said the spokesperson. “Drivers, voters and consumers got it right when they supported Proposition 22. The Supreme Court got it right when they upheld the will of California voters.”
According to CalMatters, Prop 22 became law after winning 58% of the vote in 2020. A Superior Court judge ruled that the measure was unconstitutional, but that decision was reversed by an appellate court. The state’s Supreme Court agreed to review the measure and heard oral arguments in the case on May 22. Rideshare drivers who spoke in support of Prop 22 said they value Prop 22’s guaranteed earnings provisions, as well as the flexibility they get from being independent contractors.
On July 25, the California Supreme Court issued a decision unanimously upholding Prop 22. According to the opinion, the Justices rejected assertions that the law is unconstitutional by interfering with the state legislature’s authority pertaining to worker compensation.
According to a post on Uber’s website, Prop 22 “provides historic and important protections and guarantees to workers in California.” Benefits for Uber drivers and couriers under Prop 22 include health care stipends for drivers who do not have access to health insurance plans, a minimum earnings guarantee of at least 120% of minimum wage and 35 cents per mile, and occupational accident insurance.
Axios reported that approximately 5% of California’s total workforce engages in app-based work for companies such as Uber, Lyft, and Doordash. The state’s gig workers contributed $38 billion to California’s economy in 2022.
SVLG aims to “bolster the business competitiveness” of the Silicon Valley region while promoting “a more inclusive, equitable and sustainable future,” according to its website. Hundreds of “innovation economy” companies in industries ranging from technology to health care to nonprofits are represented by SVLG.
