California Supreme Court declines Prop 22 appeal from disgruntled Uber drivers
Prop 22
Prop 22 passed last November with 58% of the vote and was seen as a huge victory for startups that rely on so-called ‘gig workers.’
The firms claimed thatAB5, a law passed in 2019 that changes the way companies classify employees, would dramatically alter their business model, and even threatened to pull out of California after a court ordered them to comply in August.
Compliance with AB5 would have forced all gig economy companies to employ their drivers and, in turn, pay for healthcare, unemployment insurance, and other benefits – something that could have added up to 30% in labor costs for firms.
The ballot received heavy backing from businesses including Uber, Lyft, and DoorDash, who spent overUS$200 millionlobbying the electorate – making it the most expensive ballot in California State’s history.
In contrast, theNo on Prop 22campaign – which claimed the legislation was “written by app companies, for app companies”– received around US$19 million in support, mostly from labor groups.
“We’re thankful, but not surprised, that the California Supreme Court has rejected this meritless lawsuit,” Jim Pyatt, a rideshare driver andYes on 22campaigners said in a statement. “We’re hopeful this will send a strong signal to special interests to stop trying to undermine the will of voters who overwhelmingly stood with drivers to pass Prop 22.”
As it stands, Prop 22 would require a seven-eighths legislative supermajority in order to amend the measure.
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Story byCities Today
Cities Today is the leading news platform on urban mobility and innovation, reaching an international audience of city leaders.Cities Today is the leading news platform on urban mobility and innovation, reaching an international audience of city leaders.
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