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California Uber, Lyft drivers classification overview:
- Who: A California appellate court has upheld Proposition 22, which allows Uber and Lyft drivers to be classified as independent contractors.
- Why: The majority of the appellate court panel found that the California Constitution grants authority to both the state legislature and voters to make decisions about workers’ compensation.
- Where: The Lyft and Uber drivers classification lawsuit was heard by 1st Appellate District judges in California.
A California appellate panel has given the green light to a California voter-approved ballot measure allowing Lyft and Uber drivers to be classified as independent contractors instead of employees, Law360 reports.
By a 2-1 margin, the appellate panel reversed the bulk of an Alameda County Superior Court judge’s 2021 ruling that Proposition 22 is “constitutionally problematic.”
The 1st Appellate District justices disagreed with the lower court, finding that the California Constitution grants authority to both the state legislature and voters to make decisions about workers’ compensation.
“If the people enact an initiative statute to create or modify the workers’ compensation system, they have exercised the plenary, unlimited authority that article XIV, section 4 confers and satisfied that aspect of the Constitution,” the appellate panel explained.
As the lone dissenter, Justice Jon B. Streeter said Proposition 22 should be invalidated because it removes lawmakers’ authority to create and enforce workers’ compensation laws and creates a power conflict between voters and the legislature. However, he said he would affirm the judgment.
Prop 22 opponents may appeal Uber, Lyft drivers lawsuit to California Supreme Court
The appellate ruling is considered a win for Uber, Lyft and other companies that hire drivers as independent contractors. However, opponents of Proposition 22 may take their legal challenge to the California Supreme Court.
Proposition 22 was passed by 58% of California voters in November 2020. The ballot measure designates app-based drivers, including Uber and Lyft drivers, as independent contractors who are not entitled to certain protections provided to employees, such as minimum wage and overtime pay.
The state of California and an industry organization called Protect App-Based Drivers and Services appealed the 2021 state court ruling, arguing Proposition 22 does not infringe on the legislature’s authority to enforce workers’ compensation laws.
Protect App-Based Drivers pointed to a court case holding that the ballot initiative process to enact law coexists with the state legislature’s power.
Do you think Uber drivers and Lyft drivers should be classified as independent contractors or employees? Join the discussion in the comments!
The drivers are represented by Scott A. Kronland, Stephen Berzon, Stacey Leyton and James Baltzer of Altshuler Berzon LLP and Robin Johansen, Richard R. Rios, Deborah B. Caplan and Benjamin Gevercer of Olson Remcho LLP.
The California Uber, Lyft drivers lawsuit is Hector Castellanos, et al. v. State of California, et al., Case No. A163655, in the Court of Appeal of the State of California, 1st Appellate District.
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4 thoughts onPanel upholds Proposition 22, allowing California Uber, Lyft drivers to classify as independent contractors
I am an Uber and Lyft driver please add me to the lawsuit
Driver and passenger on both platform. Please add my name. I thank you
Please add me I am in fact a uber and lyft driver
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