The California Supreme Court recently heard a pivotal case that could reshape the landscape for gig workers across the state. The lawsuit, brought forward by a coalition of Uber and Lyft drivers backed by the Service Employees International Union (SEIU), challenges Proposition 22—a voter-approved law from 2020 that exempts app-based drivers from being classified as employees. This case could significantly impact the rights and protections available to gig workers in California.
Background of the Case
The California Supreme Court is currently hearing arguments from Uber and Lyft drivers, supported by the Service Employees International Union, challenging Proposition 22. This law, approved by voters in 2020, exempts gig drivers from being classified as employees. The drivers argue that Proposition 22 violates the state Constitution by limiting the Legislature’s authority to establish a comprehensive workers’ compensation system for this workforce. They contend that a constitutional amendment, not a ballot initiative, is needed to alter workers’ compensation laws.
The court questioned the interpretation of “unlimited” legislative power over workers’ compensation, with justices expressing skepticism about whether voters intended to exclude their own initiative power in this area. The state and business groups defending Proposition 22 argue that the electorate has the same broad legislative powers as the Legislature, including over workers’ compensation.
A recent UC Berkeley Labor Center study found that gig drivers in California earn less than the state’s minimum wage and less than their counterparts in other major cities, suggesting that classifying drivers as employees would be more beneficial.
This legal battle follows the passage of Assembly Bill 5 (AB 5) in 2019, which aimed to classify more workers as employees, granting them various labor protections. Uber is also contesting AB 5 before the Ninth Circuit Court of Appeals, arguing that the law unfairly targets certain gig-economy businesses while exempting others. However, the federal appellate court has rejected their challenge as of June 10, 2024, allowing the California Supreme Court’s hearings to proceed.
Potential Impacts on Workers
The outcome of this case holds significant implications for gig workers. If the Supreme Court rules against Proposition 22, it could mean that gig drivers will be reclassified as employees, granting them access to critical benefits and protections. This reclassification would grant them numerous labor protections and benefits, particularly access to fair wages.
A recent study by the UC Berkeley Labor Center found that gig drivers in California earn below the state’s minimum wage and less than their counterparts in other major cities like Boston, Chicago, and Seattle. The report’s co-author, Ken Jacobs, emphasized that the majority of gig drivers would benefit from being categorized as employees, highlighting the current inequities in their earnings and working conditions.
Other benefits that reclassification would offer to gig workers include:
- Workers’ Compensation: Reclassification would ensure that gig drivers have access to workers’ compensation benefits, providing financial support and medical care if they are injured on the job.
- Unemployment Insurance: As employees, they would be eligible for unemployment insurance benefits if they lose their jobs, providing them with financial support during periods of unemployment.
- Paid Sick Leave and Family Leave: Employees are entitled to paid sick leave and family leave, allowing gig workers to take necessary time off for health reasons or to care for family members without losing income.
- Health and Safety Protections: People classified as employees would benefit from workplace health and safety regulations, ensuring safer working conditions and protections against workplace hazards.
- Job Security: Employee status typically offers greater job security compared to being an independent contractor, including protection against unjust termination and access to fair labor practices.
What Gig Workers Can Do If They Are Being Misclassified
While awaiting the Supreme Court’s decision, people who believe they are being misclassified can take several steps to protect their rights:
1. File a Complaint With the California Labor Commissioner
People can file a complaint with the California Labor Commissioner’s Office if they believe they have been misclassified. This office investigates claims and can order companies to pay unpaid wages, overtime, and other benefits that employees are entitled to.
2. Consult With an Employment Attorney
Seeking legal advice from an employment attorney can help workers understand their rights and explore their options. An attorney can assist in filing a lawsuit for misclassification and recovering lost wages and benefits.
3. File a Claim With the California Employment Development Department (EDD)
People can file a claim with the EDD for unemployment insurance benefits. Suppose the EDD determines that a worker was misclassified. In that case, the worker may be eligible for unemployment benefits, and the employer may be required to pay back taxes and penalties.
4. Document Work Conditions and Communications
Keeping detailed records of work conditions, communications with employers, schedules, and payment records can be crucial evidence in misclassification cases. Documentation helps build a strong case when filing complaints or lawsuits.
5. Educate Themselves on AB 5
Understanding AB 5 is essential for gig workers. AB 5 codified the criteria for classifying workers as employees, which include the “ABC test.” Knowing the specifics of this law can help gig drivers determine if they meet the requirements for employee status.
6. Seek Support from Worker Rights Organizations
Various non-profit organizations and worker rights groups offer resources and assistance to misclassified workers. Organizations such as the National Employment Law Project (NELP) and the Gig Workers Collective provide valuable information and support.
Professional Help for Unprofessional Mistreatment of Gig Workers
The California Supreme Court’s ruling on the gig driver exemption lawsuit has the potential to transform the gig economy by redefining the classification of gig economy participants and extending essential labor protections to them. As this legal battle unfolds, gig workers must stay vigilant and proactive in safeguarding their rights, ensuring they receive fair treatment and compensation in the rapidly evolving gig economy landscape.If you currently believe you have been misclassified as a contractor instead of an employee, the professionals at the Law Offices of Todd M. Friedman, P.C., are available to help. Schedule a consultation with our California employment misclassification lawyers to learn how we can help you fight for fair classification and unpaid wages.
