A California law that ensures many gig workers are considered independent contractors, while affording them some limited benefits, is unconstitutional and unenforceable, a California Superior Court judge ruled Friday evening.
The decision is not likely to immediately affect the new law and is certain to face appeals from Uber and other so-called gig economy companies. It reopened the debate about whether drivers for ride-hailing services and delivery couriers are employees who deserve full benefits, or independent contractors who are responsible for their own businesses and benefits.
Last year’s Proposition 22, a ballot initiative backed by Uber, Lyft, DoorDash and other gig economy platforms, carved out a third classification for workers, granting gig workers limited benefits while preventing them from being considered employees of the tech giants. The initiative was approved in November with more than 58 percent of the vote.
But drivers and the Service Employees International Union filed a lawsuit challenging the constitutionality of the law. The group argued that Prop. 22 was unconstitutional because it limited the State Legislature’s ability to allow workers to organize and have access to workers’ compensation.
his ruling that Prop. 22 violated California’s Constitution because it restricted the Legislature from making gig workers eligible for workers’ compensation.
“The entirety of Proposition 22 is unenforceable,” he wrote, creating fresh legal upheaval in the long battle over the employment rights of gig workers.
“I think the judge made a very sound decision in finding that Prop. 22 is unconstitutional because it had some unusual provisions in it,” said Veena Dubal, a professor at the University of California’s Hastings College of Law who studies the gig economy and filed a brief in the case supporting the drivers’ position. “It was written in such a comprehensive way to prevent the workers from having access to any rights that the Legislature decided.”
Scott Kronland, a lawyer for the drivers, praised Judge Roesch’s decision. “Our position is that he’s exactly right and that his ruling is going to be upheld on appeal,” Mr. Kronland said.
ballot proposal that could allow voters in the state to decide next year whether gig workers should be considered independent contractors.