On July 25, the California Supreme Court upheld Proposition 22, securing the right for gig economy companies like Uber and Lyft to classify their drivers as independent contractors. This decision champions the autonomy of independent workers and benefits consumers by sustaining the availability of services like ride-hailing and grocery delivery.
Glenn Spencer, Senior Vice President of Employment Policy, said in a statement: "Today's decision by the California Supreme Court is a win for workers who value independent contracting for its flexibility, work-life balance, and entrepreneurial opportunities. It also benefits California consumers who enjoy the services provided by independent workers and digital platforms."
"This ruling should resonate with Congress, state legislatures, and government agencies nationwide. The U.S. Chamber will persist in defending the economic opportunities for independent contracting, highlighted by our recent lawsuit against the Department of Labor's rule that threatens this freedom."
The U.S. Chamber Litigation Center filed an amicus brief in the case.
Background on Prop 22
In 2019, California's AB-5 law introduced the ABC test to determine independent contractor status, potentially reclassifying many as employees and stripping them of their flexibility. In response, gig economy companies propelled Proposition 22, exempting them from AB-5 if they provided certain benefits, which voters passed in November 2020. Despite challenges from unions and subsequent legal battles, the Supreme Court's decision ultimately preserves the intent of Proposition 22, allowing individuals to continue working independently under its provisions.
