There are lots of stories out since Friday nights Alameda County Superior Court Judge Frank Roesch ruled that Proposition 22 was unconstitutional. AB5 originally had the app-based gig economy cornered into making drivers employees. With 85% of Rideshare Drivers working less than 25 hour a week and wanting to remain Independent Contractors instead of employees, its no surprise that on November 3rd 2020, 59% of California voted yes on Prop22. Prop22 excluded app-based gig companies from having to follow AB5. I will be doing a piece on what happened later in the week. Below are articles which discuss what happened on Friday, August 20th, 2021 regarding the Prop22 lower court decision:
- [NBC News]: “This ruling ignores the will of the overwhelming majority of California voters and defies both logic and the law,” company spokesman Noah Edwardsen said. “You don’t have to take our word for it: California’s attorney general strongly defended Proposition 22’s constitutionality in this very case.” He said the measure will remain in force pending the appeal… [read full article]
- [Los Angeles Times]: California’s giant ride-hailing and delivery companies suffered a setback Friday as a state Superior Court judge invalidated a 2020 ballot proposition that allowed Uber, Lyft, DoorDash, Instacart and other app-based businesses to classify their workers as independent contractors. In a lawsuit brought by the Service Employees International Union and several drivers, Alameda County Superior Court Judge Frank Roesch ruled that Proposition 22 is unconstitutional and unenforceable… [read full article]
- [The Verge]: Geoff Vetter, a spokesperson for the Protect App-Based Drivers & Services Coalition (PADS), which includes Uber, Lyft, DoorDash, and Instacart, said in a statement emailed to The Verge that they plan to appeal. The judge “made a serious error by ignoring a century’s worth of case law requiring the courts to guard the voters’ right of initiative,” Vetter wrote, noting that a majority of California voters had approved the measure. “All of the provisions of Prop 22 will remain in effect until the appeal process is complete.”… [read full article]
- [CNET]: The decision throws into question the fate of Proposition 22, a law that was passed last November after Uber, Lyft and other gig economy companies poured more $200 million into a campaign urging voters to support the measure. The state law will likely remain in effect while expected appeals make their way through the court system. ,, The California measure has implications nationwide: Uber and other gig-economy firms are currently pushing a similar ballot effort in Massachusetts. The companies argue drivers prefer the flexibility of being their own bosses. Opponents, however, say drivers need the kind of pay and protections that come with full employee status, and that such a classification doesn’t rule out flexibility… [read full article]
- [New York Times]: The decision is not likely to immediately affect the new law and is certain to face appeals from Uber and other so-called gig economy companies. It reopened the debate about whether drivers for ride-hailing services and delivery couriers are employees who deserve full benefits, or independent contractors who are responsible for their own businesses and benefits. Last year’s Proposition 22, a ballot initiative backed by Uber, Lyft, DoorDash and other gig economy platforms, carved out a third classification for workers, granting gig workers limited benefits while preventing them from being considered employees of the tech giants. The initiative was approved in November with more than 58 percent of the vote… [read full article]
- [Engadget]: “This ruling ignores the will of the overwhelming majority of California voters and defies both logic and the law. We will appeal and we expect to win. Meanwhile, Prop. 22 remains in effect, including all of the protections and benefits it provides independent workers across the state.”… [read full article]
- [TechCrunch]: In a late Friday night blow to Uber, Lyft and other gig worker-centered companies, a superior court judge ruled that California’s Proposition 22, which was passed in 2020 and designed to overrule the state’s controversial AB-5 law on the employment status of gig workers, violates the state’s constitution. Frank Roesch, a superior court judge in Alameda County, which encompasses Oakland, Berkeley and much of the East Bay, ruled that the law would limit “the power of a future legislature” to define the employment status of gig workers. The lawsuit was filed by the Service Employees International Union (SEIU) in January, after a similar lawsuit was rebuffed by the California Supreme Court and referred to a lower court. The court’s decision will almost certainly be appealed and further legal arguments are to be expected… [read full article]
- [Gizmodo]: Asked for comment, Lyft directed Gizmodo to a statement made by the pro-Prop 22 group Protect App-Based Drivers & Services Coalition (PADS), formerly known as the Yes on Prop 22 Coalition, whose spokesperson also said the group planned to appeal the decision. “We believe the judge made a serious error by ignoring a century’s worth of case law requiring the courts to guard the voters’ right of initiative. This outrageous decision is an affront to the overwhelming majority of California voters who passed Prop 22,” said Geoff Vetter, a spokesperson for PADS. “We will file an immediate appeal and are confident the Appellate Court will uphold Prop 22. Importantly, this Superior Court ruling is not binding and will be immediately stayed upon our appeal. All of the provisions of Prop 22 will remain in effect until the appeal process is complete.”… [read full article]
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