On February 3, 2021, the California Supreme Court rejected a lawsuit that sought to overturn Proposition 22. Prop 22 is the ballot measure that has kept app-based ride-hailing and delivery drivers as independent contractors instead of employees eligible for benefits and job protections.
Proposition 22 passed in November 2020, with 58% support. As a result of its passing, companies like Uber and Lyft do not have to follow the state labor law AB5, which would have required the companies to treat drivers as employees and not independent contractors.
According to ABC7, Proposition 22 was the most expensive ballot measure in state history. Uber, Lyft, and other services put $200 million behind the effort to undo the law considered to be put in place by “labor-friendly Democrats.”
The recent lawsuit was denied because the presiding judges felt the issue should be filed in a lower court. The lawsuit, filed by drivers and unions who oppose Proposition 22, was filed directly with the high court, claiming the measure was unconstitutional because it limits the power of the Legislature and excludes drivers from being eligible for workers’ compensation.
Initially, the lawsuit was filed seeking speedy review. It was submitted directly with the Supreme Court last month. Mary-Beth Moylan, associate dean of McGeorge Law School in Sacramento, acknowledged the initial challenge would be getting the court to take the case.
It has yet to be seen what will happen with the lawsuit next or if the plaintiffs will pursue the matter in the lower court. If they do, it could continue to be a challenge to establish urgency and both factual and legal issues.
For more information on the latest rideshare industry news, click here. In the event you have a legal question pertaining to a rideshare accident or incident, our lawyers are ready to help. Contact the Rideshare Law Group to learn more.