The California Supreme Court issued an opinion on July 25 unanimously upholding Proposition (Prop) 22, which classifies app-based gig workers for companies such as Uber and Lyft as independent contractors rather than employees.
According to the opinion authored by Justice Goodwin H. Liu, Californians approved Prop 22 with a 58.6% vote on the November 2020 ballot. The measure was intended to "protect the basic legal right of Californians to choose to work as independent contractors with rideshare and delivery network companies," "protect the individual right of every app-based rideshare and delivery driver to have the flexibility to set their own hours for when, where, and how they work," and "require rideshare and delivery network companies to offer new protections and benefits for app-based rideshare and delivery drivers, including minimum compensation levels, insurance to cover on-the-job injuries, automobile accident insurance, health care subsidies for qualifying drivers, protection against harassment and discrimination, and mandatory contractual rights and appeal processes."
In 2021, the Alameda County Superior Court found that Prop 22 was "constitutionally problematic," but that ruling was reversed by an appellate court. The state Supreme Court then agreed to review the measure.
According to a post on Uber’s website, Prop 22 "provides historic and important protections and guarantees to workers in California." Benefits for Uber drivers and couriers under Prop 22 include healthcare stipends for drivers who do not have access to health insurance plans, a minimum earnings guarantee of at least 120% of minimum wage and 35 cents per mile, and occupational accident insurance.
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 it "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.
The California Supreme Court is comprised of Chief Justice Patricia Guerrero and Justices Carol A. Corrigan, Goodwin H. Liu, Leondra R. Kruger, Joshua P. Groban, Martin J. Jenkins, and Kelli M. Evans. Guerrero was sworn in as the 29th Chief Justice of California in January 2023, becoming the first Latina to hold the position.