Companies that rely on gig work like Uber and DoorDash scored a major win at the California Supreme Court Thursday, as justices unanimously upheld a proposition that lets companies keep using gig workers instead of hiring them as employees.
Lyft Driver Rick Gee, who was waiting for his next job from a parking lot at the Sacramento Airport on Thursday, said that’s fine: He likes gig work.
“Being that I was a postman in my last job and it wasn't a flexible schedule, no days off, six days a week, 13-hour days, I feel like this is perfect for me,” Gee said. “I have a 9-year-old son, who's into basketball league, and I'm able to go to practices.”
He said he would like a better health care option — he’s on MediCal now — but still prefers the flexibility.
California voters passed Proposition 22 back in 2020 to give companies like Lyft the option to contract with but not employ workers like Gee, which would entitle them to more benefits.
The Service Employees International Union took the proposition to court, saying it violated state law by making workers ineligible for workers’ compensation benefits.
David Green is the President of SEIU Local 721 in Southern California. He said he’s disappointed that the Supreme Court held up the measure, but wasn’t surprised.
“We know that these multi-billion dollar, deep-pocketed corporations have been fighting this for a long time and it's not going to stop our resolve,” he said.
Companies including Uber, Lyft and DoorDash spent over $200 million on the Proposition 22 campaign.
The ballot measure was a response to 2019 bill, AB 5, which required companies to classify those workers as employees.
Proposition 22 guarantees minimum earnings of 120% of minimum wage based on time worked. That does not include time waiting for a delivery or other job to come through, but the figure includes reimbursement for mileage.
It also includes health stipends, but only for workers who do not qualify for public assistance.
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