Prop 22, which is in effect even after it goes through the appeals process, provides some protection for gig workers by requiring companies to pay health care benefits and an hourly minimum wage. 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 offer benefits like health insurance. Rideshare and delivery companies pressed hard for the bill, spending $200 million on the process while promising no price increases (they lied through their teeth), and it ultimately passed with about 59 percent of the vote.
Since then, gig economy companies have come under scrutiny beyond the Prop 22 battle. The FTC has said it is looking into wage settlements in the industry, and says it will pursue companies that misrepresent how much someone can work for them. The Department of Labor also proposed a rule change that would prompt companies to classify workers as employees rather than contractors. It reaped more than 54,000 comments in two months, and the department says it is “currently reviewing” them.
In response to the appeals court decision, 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 Prop 22. Across the state, drivers and couriers have said they happy with prop 22, giving them new benefits while maintaining the unique flexibility of app-based working. We are pleased that the Court has respected the will of the people and that Prop 22 remains in place, preserving the drivers’ independence.
Gig companies should know by now that drivers won’t give up until they have the rights afforded to all other workers in the state, from basic workplace protections like workers’ compensation and unemployment insurance, to paid sick leave, to a seat at the table to negotiate better wages and benefits. Corporations that put their profit above our democracy should not be allowed to dictate the laws in our state. SEIU will continue to stand alongside administrators in the fight to prevent democracy from being sold to the largest lender.
The battle is probably not over yet. The NYT says the Service Employees International Union and drivers will likely appeal Monday’s decision, potentially taking the case to the California Supreme Court.
Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.