California’s gig worker Prop 22 ruled unconstitutional by superior court – TechCrunch

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In a late Friday evening blow to Uber, Lyft and different gig worker-centered firms, a superior court docket decide dominated that California’s Proposition 22, which was handed in 2020 and designed to overrule the state’s controversial AB-5 regulation on the employment standing of gig employees, violates the state’s structure.

Frank Roesch, a superior court docket decide in Alameda County, which encompasses Oakland, Berkeley and far of the East Bay, dominated that the regulation would restrict “the ability of a future legislature” to outline the employment standing of gig employees. The lawsuit was filed by the Service Staff Worldwide Union (SEIU) in January, after an analogous lawsuit was rebuffed by the California Supreme Court docket and referred to a decrease court docket.

The court docket’s determination will nearly definitely be appealed and additional authorized arguments are to be anticipated.

“Right this moment’s ruling by Choose Roesch putting down Proposition 22 couldn’t be clearer: The gig industry-funded poll initiative was unconstitutional and is subsequently unenforceable,” mentioned Bob Schoonover, President of SEIU California State Council in a press release. “For 2 years, drivers have been saying that democracy can’t be purchased. And in the present day’s determination reveals they have been proper.”

The superior court docket’s determination is simply the most recent in an extended line of victories and defeats within the battle between firms that closely depend on gig employees like Uber and DoorDash, and unions and advocates representing employees. A lot of the talk facilities on the authorized distinction between a freelancer and an worker, and to what extent firms are answerable for the care and advantages of their employees.

Such a distinction is massive enterprise: Uber, Lyft and different firms spent greater than $200 million collectively to push Prop 22 to victory final 12 months. California voters handed the proposition roughy 59% to 41% in what was extensively perceived as a significant victory for gig employee platforms.

Such fights are usually not restricted to merely Silicon Valley’s residence state, nonetheless. Earlier this 12 months in the UK, Uber misplaced a authorized battle over its employment classification selections and in the end reclassified tens of hundreds of its drivers as employees, a call which supplied them a variety of advantages not beforehand assured.

Up to date August 20, 2021 to incorporate a press release from SEIU.

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