A judge ruled California’s Proposition 22, which allowed transportation network companies (TNCs) and other companies to classify workers as independent contractors instead of employees, unconstitutional last week.
Proposition 22 was voted in last November and heavily supported by Uber, Lyft, and other companies that rely on gig workers, including Instacart and DoorDash. The law allowed such workers to be classified as contractors as long as some benefits were provided. It will likely remain in effect while appeals are filed and ruled on, saving those companies the expense of hiring their drivers as employees.
Superior Court Judge Frank Roesch said in his ruling that Proposition 22 hinders the state’s ability to set workplace standards and has bearing on other rules, including workers’ compensation regulations.