Silicon Valley Leadership Group spokesperson: ‘pleased to see the California Supreme Court uphold Proposition 22’

Policy
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Silicon Valley Leadership Group CEO Ahmad Thomas | svlg.org

The Silicon Valley Leadership Group (SVLG) told Flexible Work News in a July 30 statement that the organization supports the California Supreme Court’s decision to uphold Proposition (Prop) 22, citing surveys indicating gig workers' support for the measure.

"As an Innovation Economy amicus curiae in the Castellanos case, the Silicon Valley Leadership Group is pleased to see the California Supreme Court uphold Proposition 22," said the spokesperson. "Nearly 60 percent of voters supported the proposition that brought greater independence to workers. The initiative also provided drivers with new protections including healthcare subsidies and wage guarantees. Studies and polls consistently show that drivers themselves want the flexibility to decide when, where and for whom they work."

Prop 22, also known as the App-Based Drivers as Contractors and Labor Policies Initiative, was approved by a 58.63% vote on California’s 2020 ballot, according to Ballotpedia. The law classified app-based delivery and transportation workers as independent contractors rather than employees and guaranteed certain labor and wage benefits, including minimum earnings, insurance, and healthcare subsidies. After a lawsuit over the measure, an Alameda County Superior Court judge ruled that Prop 22 was unconstitutional. An appellate court reversed the superior court’s decision, and the state supreme court agreed to review the measure.

According to SVLG, it was one of several industry associations, alongside Chamber of Progress, NetChoice, Asian Industry B2B, and sf.citi, that submitted an amicus brief in April in support of Prop 22. According to the brief, gig workers are reliant upon the flexibility of independent contractor relationships, and Prop. 22 protects their ability to choose to engage in that type of work. The organizations said Prop. 22 "provides important social goods and economic opportunities for millions of Californians, including communities of color and women."

The organizations stated that the emergence of app-based gig work has resulted in widely available, flexible opportunities "to the benefit of workers and customers alike," according to the brief. Through the gig economy, millions of individuals can "work on their own terms," either using gig work as their primary source of income or as supplemental income. The organizations said Prop. 22 "protects and respects worker autonomy" while also providing those who choose to work as independent contractors with benefits such as subsidies for health care, accident insurance, and guaranteed earnings. Reclassifying these workers as employees would "significantly reduce the income-earning opportunities of the drivers who currently work as independent contractors," according to the brief.

A survey conducted among Californians who drive for Uber, Lyft, DoorDash, and Instacart in 2021 found that 88% of respondents said Prop 22 had been "good for them," with 76% saying Prop 22 "increased my pay," according to a report from Protect App-Based Drivers and Services. Additionally, 84% of survey respondents said they would recommend that other states pass laws similar to Prop 22.

SVLG was founded in 1977 by Hewlett-Packard Co-founder David Packard. According to its website, SVLG aims to "bolster the business competitiveness" of the Silicon Valley region while promoting "a more inclusive, equitable and sustainable future."

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