Proposition 22, which has been in place even as it went through the appeals process, provides some protections for temporary workers by requiring companies to provide health care stipends and minimum hourly pay. However, it also means they don’t get certain protections like unemployment insurance and family leave, and the companies they drive for don’t have to provide benefits like health insurance. Rideshare and delivery companies lobbied hard for the bill, spending $200 million in the process while promising not to raise prices (they lied through their teeth), and it ended up passing with about 59 percent of the vote.
Since then, companies in the shadow economy have faced scrutiny beyond the fight over Proposition 22. The FTC has said it is investigating whether there has been wage fixing in the industry and says it will go after companies that misrepresent how much someone can earn working for them. . The Labor Department also proposed a rule change that would push companies to classify workers as employees rather than contractors. reaped more than 54,000 comments in two months and the department says you are “currently reviewing” them.
In response to the appeals court decision, which was filed Monday, Uber chief legal officer Tony West sent the following statement to the edge:
Today’s ruling is a victory for app-based workers and the millions of Californians who voted for Proposition 22. Across the state, drivers and messengers have said they are happy with Prop 22, giving them new benefits while retaining the unique flexibility of app-based working. We are pleased that the Court has upheld the will of the people and that Prop. 22 remains in effect, preserving the independence of drivers.
Gig companies should know by now that drivers won’t give up until they have the rights accorded to every other worker in the state, from basic workplace protections like workers’ compensation and unemployment insurance, paid sick leave to having a seat at the table to negotiate better wages and benefits. Corporations that prioritize their bottom line over our democracy should not make the laws in our state. SEIU will continue to support drivers in the fight to prevent democracy from being sold to the top spender.
The fight is probably not over yet. The NYT says the Service Employees International Union and drivers are likely to appeal Monday’s decision, which could take the case all the way to the California Supreme Court.
