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SOUTHERN CALIFORNIA RECORD

Monday, June 17, 2024

Industry associations say California Supreme Court should uphold Prop 22

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Members of the Silicon Valley Leadership Group | X/SVLeadershipGrp

On April 3, the Chamber of Progress, NetChoice, Asian Industry B2B, the Silicon Valley Leadership Group, and sf.citi submitted an amicus brief to the California Supreme Court. They urged the court to uphold Proposition 22 (Prop 22), arguing that a reversal would adversely impact women and communities of color.

In 2020, Prop 22 was approved by California voters. This proposition allowed app-based drivers and delivery workers to be classified as independent contractors rather than employees, according to CalMatters. A Superior Court judge initially deemed the measure unconstitutional; however, it was later upheld by an appeals court. The state's Supreme Court agreed to review the measure. After hearing oral arguments on May 22, the justices appeared inclined to uphold Prop 22. Rideshare drivers who supported Prop 22 said they appreciate its guaranteed earnings provisions and the flexibility offered by being independent contractors. The justices have a maximum of 90 days to reach a decision.

According to the Chamber of Progress and other associations that filed in support of Prop 22, when it was approved by 58.6% of California voters in 2020, its support was particularly strong among female, black, and Hispanic voters. They cited a Pew Research Center study which found that gig workers tend to be young, nonwhite, and lower-income individuals who often "depend on the flexibility" provided by gig work to accommodate multiple jobs as well as other obligations "such as caregiving duties and educational pursuits."

The associations also noted that revenue from gig work tends to bolster hyper-local economies. Gig workers from underserved communities often spend their earnings supporting local businesses which stimulates their local economies. Furthermore, when communities have a gig workforce available, these on-demand services can attract more businesses and consumers to the area. The brief cites a study by the National Bureau of Economic Research which found that introducing a gig economy in a city is associated with a 5% increase in new business registrations.

The organizations also stated that the status of independent contractor is supported by a majority of California women, who value flexibility, extra income, and the opportunity to build a business.

The Chamber of Progress is a tech industry coalition advocating for policies that "ensure all Americans benefit from technological advancements." NetChoice is an online business trade association opposing policies that could negatively impact the operation and innovation of Internet-based businesses. 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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