Court rules that 2020 Proposition 22 ballot initiative was legal
A California state appeals court today upheld Proposition 22, rejecting a lower court injunction against the 2020 ballot proposition – which gave gig work drivers new wage and benefit guarantees while preserving their independent contractor status.
California voters approved Prop 22 in 2020 by an 18-point margin, with especially strong support among majority-minority communities. A decision to overturn Prop 22 could have had massive consequences for gig drivers unable to participate in full-time work, as well as economy-wide impacts for California.
“This is a major victory for gig workers who depend on being able to set their own schedule and be their own boss,” said Chamber of Progress CEO Adam Kovacevich. “It’s also a win for the majority of Californians who voted in favor of Prop 22. Protecting independent work is good for drivers, good for consumers, and good for California’s economy.”
Had Prop 22 been overturned, employment law in California would have reverted back to AB 5, a bill passed by California lawmakers in 2020 that requires rideshare companies (among others) to classify drivers as employees.
An analysis published by Chamber of Progress found that if a similar national rule reclassifying independent contractors as full-time employees were enacted, it could result in a loss of direct income for approximately 3.4 million American workers.
Last year, Chamber of Progress released an analysis of the Prop 22 vote, examining the correlation between the demographic makeup of communities in California and support for the gig work ballot initiative. The report, conducted by economists from Berkeley Research Group, found high support for Prop 22 in cities and counties with large Black and Hispanic communities.
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