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The battle over the gig economy in California continues

9/6/21

By: John Moot

A California judge recently ruled that a 2020 ballot measure exempting rideshare and food delivery drivers from a state labor law is unconstitutional because it infringes on the Legislature’s power to set workplace standards. Uber, Lyft and DoorDash spent $200 million dollars qualifying and then getting passed with 58% of the votes a proposition that exempted them from a bill passed by the California legislature which required them to give benefits to more workers. A labor union and group of drivers sued to overturn the proposition. The case will be appealed and most predict it will wind up eventually in the California Supreme Court. It seems likely the provision of the proposition will remain in effect during the appeals but the battle over the gig economy in its birthplace we continue.   

If you have any questions, please contact John Moot at john.moot@fmglaw.com