The Gig is Up


On November 30, 2020, California voters approved Proposition 22 which was a statewide – and fiercely fought – ballot initiative which redefines the employment status of gig workers in the app-based economy.  Last month, a lawsuit was filed by a number of unions seeking to have the California Supreme Court declare the proposition unconstitutional.  Specifically, the lawsuit alleges that Proposition 22 limit the power of elected officials to govern, in violation of the California Constitution, by removing their ability to grant workers the right to organize and give access to the state workers’ compensation program.  Earlier this week, the California Supreme Court issued a ruling rejecting these constitutional challenges.   The court’s decision strengthens the position of gig economy companies, including Uber, Lyft and DoorDash, which spent hundreds of millions of dollars bankrolling the measure on the November ballot.

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