
Prop 22 Goes to CA Supreme Court, Could Transform Gig Economy
6/3/2024 | 1m 59sVideo has Closed Captions
California's Supreme Court will vote on Prop 22, the law that keeps gig workers independent.
More than 1 million drivers, delivery workers and more in California could stay independent contractors if the state supreme court upholds Prop 22, a 2020 proposition sponsored by rideshare companies like Uber and Lyft and delivery apps like DoorDash and Instacart. Here's how the decision could transform the gig economy in California. Levi Sumagaysay reports for CalMatters.
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SoCal Matters is a local public television program presented by PBS SoCal

Prop 22 Goes to CA Supreme Court, Could Transform Gig Economy
6/3/2024 | 1m 59sVideo has Closed Captions
More than 1 million drivers, delivery workers and more in California could stay independent contractors if the state supreme court upholds Prop 22, a 2020 proposition sponsored by rideshare companies like Uber and Lyft and delivery apps like DoorDash and Instacart. Here's how the decision could transform the gig economy in California. Levi Sumagaysay reports for CalMatters.
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Learn Moreabout PBS online sponsorship[protesters chanting] The California Supreme Court will decide on a case that could affect the fate of more than one million gig workers in the state.
Perhaps changing the way we hail rides, order takeout, or get groceries delivered.
The state's high court will determine whether it should uphold Prop 22, a voter-approved ballot measure sponsored by Uber, Lyft, DoorDash, and Instacart four years ago.
Prop 22 allows gig companies to continue to treat their ride-hailing drivers and delivery workers as independent contractors.
The proposition was the industry's response to AB5, a state law that codified a state Supreme Court decision requiring the companies to classify those workers as employees.
Treating gig workers as independent contractors is central to the business model of the California-based companies.
The companies are fighting to hang onto that model, saying it helps them provide gig workers with flexible schedules, but critics say it lets the companies avoid paying employment taxes and shift financial responsibility to their workers and customers, plus governments.
The court's seven justices have 90 days to hand down a decision which could transform the gig economy in California.
If Prop 22 is thrown out, gig companies would be subject to Assembly Bill 5.
That law, passed in 2019, would throw the companies' business models out of whack.
The companies could be required to pay employment taxes for their estimated 1.4 million workers around the state, and provide those workers with additional benefits they don't have now, such as sick pay and overtime and occupational accident insurance beyond the $1 million coverage limit under Prop 22.
For CalMatters, I'm Levi Sumagaysay.

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SoCal Matters is a local public television program presented by PBS SoCal