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SOUTHERN CALIFORNIA RECORD

Friday, March 29, 2024

Prop 22 is expected to decide AB 5 and fate of Uber and Lyft drivers

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After an injunction requiring Uber and Lyft to comply with Assembly Bill 5 (AB 5) was stayed on appeal, the ride-hailing companies asked California’s First Appellate District last week to reverse the order requiring the companies to reclassify drivers as employees rather than independent contractors.

The three First Appellate District justices have yet to issue a decision on the motion and experts say ballot measure Proposition 22 is likely to decide the matter in the Nov. 3 election.

“Uber and Lyft are probably going to lose that request,” said attorney Brian Kabateck. “The bigger question is whether or not Prop 22 is going to pass, which apparently they funded to the tune of [$185 million].”

As previously reported, AB 5 required that drivers and other gig-economy workers be treated as employees and not independent contractors. 

“If Prop 22 passes, then it will throw into serious question the court's ruling and whether or not the court's ruling makes any difference anymore because Uber and Lyft have a new law, which allows them to continue classifying drivers as independent contractor gig drivers,” Kabateck told Southern California Record. “What the court of appeal will likely do is interesting and certainly somewhat important but if Uber and Lyft win on Prop 22, then it becomes moot.”

Prop 22 would not only override AB 5 but also institute it’s own benefits, such as accident insurance, disability payments and death insurance, according to Ballotpedia.

Kabateck added that if not enough voters approve Prop 22 on Nov. 3, then the court of appeal’s decision will prevail.

“The loss of Prop 22 is going to be strong evidence that Uber and Lyft did violate the law, that they can't employ people as independent contractors under the current state of the law and if they want to change that, their only choice is going to be to go to Sacramento to try and make a deal,” said Kabateck.

Supporters of Uber and Lyft have taken to social media to endorse voting in favor of Prop 22. For example, on Oct. 1 Assemblyman Kevin Kiley (R-Roseville) tweeted:

“The initiative to keep Uber and Lyft in California (Prop. 22) now has bipartisan backing in the Legislature. If it passes, support for the remnants of #AB5 could quickly collapse.”

On Oct. 7, Yes On Proposition 22 tweeted on Oct. 7

"YES on 22 provides app-based drivers with new benefits, including healthcare benefits and an earnings guarantee. 22 also protects the flexibility that drivers need to earn when, where, and how they choose."

Further, the Los Angeles Freelancers Coalition tweeted on Oct. 16:

“When it comes to Prop 22, trust CA rideshare drivers NOT CA politicians. 73% prefer the flexibility of being an independent contractor. When it comes to your paycheck, you call the shots...not Sacramento. Vote to protect the freedom to earn a living.”

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