Industry associations say striking down Prop 22 would disparately harm minority communities

Policy
Webp sfciti
Members of the tech trade association sf.citi | sfciti.org

The Chamber of Progress, NetChoice, Asian Industry B2B, the Silicon Valley Leadership Group, and sf.citi have filed an amicus brief on April 3 in support of California’s Proposition 22 (Prop 22). The proposition is currently under review by the California Supreme Court. Prop 22 is a voter-approved measure from 2020 that classifies app-based transportation and delivery drivers as independent contractors.

According to CalMatters, an appellate court has upheld Prop 22 after a Superior Court judge deemed it unconstitutional. The state's Supreme Court is now reviewing the measure. After hearing oral arguments on May 22, the justices appear reluctant to overturn Prop 22. Workers who voiced their support for Prop 22 highlighted its guaranteed earnings provisions and the flexibility offered by being independent contractors. The justices have a period of 90 days to reach a decision.

In their amicus brief, the Chamber of Progress and other associations stated that forcibly reclassifying workers who are independent contractors as employees would disparately harm diverse communities who voted for the measure in 2020. They argue that Prop 22 benefits app-based drivers, consumers, and California's economy as a whole but is particularly significant for the state’s diverse communities. According to them, many of California’s approximately 870,000 app-based workers include women and historically disadvantaged communities who value the flexibility and additional income opportunities provided by being an independent contractor. The organizations further added that forcing independent contractors to become employees would restrict their freedom to work on their own terms and undermine the concentrated community benefits gig work provides to historically disadvantaged communities.

The associations referenced a national study conducted by Shapiro and Stuttgen in their brief. The study found that if all independent contractors in the US were reclassified as employees, more than 60% of all reclassified workers would suffer substantial direct income losses. Many independent contractors choose this type of work due to chronic illnesses, disabilities, or family obligations that make traditional employment challenging. Many also use gig work as an opportunity to supplement their income from another job. The organizations concluded by saying, "Proposition 22 strikes the right balance between preserving worker flexibility and ensuring worker well-being. Most importantly, it is the balance that the most-affected Californians have chosen."

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.

The Chamber of Progress is a tech industry coalition advocating for policies that ensure all Americans benefit from technological advancements, according to the brief. NetChoice is a trade association of online businesses opposing policies that could negatively impact the operation and innovation of Internet-based business. Asian Industry B2B represents Southern California-based Asian-owned businesses supporting independent contractors’ rights. The Silicon Valley Leadership Group represents companies and workers of the Innovation Economy. sf.citi is a San Francisco-based trade association.

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