Drivers for Uber, Lyft and different app-based companies filed a lawsuit Tuesday to overturn a California poll initiative that classifies them as impartial contractors as an alternative of workers eligible for advantages and job protections.
The lawsuit filed with the California Supreme Court docket contends that Proposition 22 is unconstitutional as a result of it limits the facility of the state legislature to grant staff the best to arrange and excludes drivers from eligibility for staff’ compensation.
The measure, which waswith 58% assist, was the costliest in state historical past. DoorDash, Lyft, Uber and different app-based firms spent $200 million in assist of it. Labor unions, which joined drivers within the lawsuit, spent about $20 million to oppose the measure.
“Prop 22 does not simply fail our state rideshare drivers, it fails the fundamental take a look at of following our state structure,” mentioned Bob Schoonover of the SEIU union. “The regulation as written by Uber and Lyft denies drivers rights below the regulation in California and makes it practically unimaginable for lawmakers to repair these issues.”
“Each day, rideshare drivers like me wrestle to make ends meet as a result of firms like Uber and Lyft prioritize company earnings over our wellbeing,” Saori Okawa, a plaintiff within the go well with, mentioned in a press release. “I do know it is up to the folks we elect to make our legal guidelines, not rich executives who revenue from our labor.”
The Sure On 22 coalition, a bunch of organizations backing the poll measure, referred to as the lawsuit “meritless.”
“Practically 10 million California voters — together with the overwhelming majority of app-based drivers — handed Prop 22 to guard driver independence, whereas offering historic new protections,” Jim Pyatt, an Uber driver and spokesperson for the coalition, mentioned in a press release. “Meritless lawsuits that search to undermine the clear democratic will of the folks don’t stand as much as scrutiny within the courts.”
Uber didn’t instantly reply to a request for remark, whereas Lyft referred a question to the Sure on 22 coalition.
An extended authorized battle
The lawsuit is the most recent chapter in a multi-year combat between high-tech gig firms and. Gig firms have from California’s , which Democrats within the legislature handed in 2019 and which made it tougher to categorise sure staff as impartial contractors.
That regulation expanded a California Supreme Court docket ruling that would have required gig platforms to supply drivers with protections like minimal wage, time beyond regulation pay, medical insurance and reimbursement for bills.
Proposition 22 was written by Uber and Lyft and supported by DoorDash, Postmates and Instacart. When the poll measure handed final November, proponents mentioned it confirmed voters’ assist for the present system, which permits drivers some measure of flexibility to set their very own schedules and retains gig companies comparatively inexpensive for purchasers. Opponents accused the gig firms of shopping for their very own regulation, and vowed to maintain preventing.
Beneath Proposition 22, drivers stay impartial contractors exempt from these necessities, however do obtain some “various advantages,” together with a assured minimal wage and subsidies for medical insurance in the event that they common 25 hours of labor every week. The proposition features a provision that requires a seven-eighths majority to overturn or change the measure sooner or later.
CBS Information’ Irina Ivanova contributed reporting.