2021-50: Uber/Lyft initiative struck down as unconstitutional - Spidell

2021-50: Uber/Lyft initiative struck down as unconstitutional


An Alameda Superior Court has struck down Proposition 22 as unconstitutional because it:

  • Limited the Legislature’s ability to enact future legislation concerning the app-based drivers’ workers’ compensation in violation of the California Constitution; and
  • Violated the single subject rule because it dealt with both the drivers’ worker classification and the Legislature’s ability to legislate concerning the workers’ collective bargaining rights.

Uber and Lyft have stated they will appeal the ruling. The lower court’s ruling will likely be stayed throughout the entire appeal process, which may go all the way to the U.S. Supreme Court.

Proposition 22, approved by the California voters last November, allows app-based drivers, such as Uber and Lyft drivers, to be treated as independent contractors but requires the network companies that employ them to provide certain benefits to these drivers. These benefits include compensation equal to 120% of the state minimum wage, no terminations without cause, and health insurance stipends.

A copy of the judge’s order is available at:

https://caltax.com/files/2021/prop-22-unconstitutional.pdf

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