The lawsuit is the latest round in the high-
stakes fight between labor and the titans of the
gig economy, all based in San Francisco.
Proposition 22 was written by Uber and Lyft
and supported by DoorDash, Postmates and
Instacart to challenge the landmark labor law
AB5 passed by Democrats in 2019. It expanded
a California Supreme Court ruling that limited
businesses from classifying certain workers as
independent contractors.
The measure granted the delivery services
an exemption from the law that would have
required providing drivers with protections like
minimum wage, overtime, health insurance
and reimbursement for expenses.
Under the measure, drivers remain
independent contractors exempt from
mandates such as sick leave and expense
reimbursement but would receive “alternative
benefits,” including a guaranteed minimum
wage and subsidies for health insurance if
they average 25 hours of work a week.
Uber and Lyft did not comment hours after
being contacted.
A group that supported the ballot initiative
issued a statement criticizing the lawsuit as an
effort to overturn the vote.
“Voters across the political spectrum spoke
loud and clear, passing Prop. 22 in a landslide,”
Jim Pyatt, an Uber driver in Modesto, said
in the statement. “Meritless lawsuits that
seek to undermine the clear democratic
will of the people do not stand up to scrutiny
in the courts.”