Commentary: A California appellate court ruling added a new twist to the legal and political battle over the status of gig workers, which dates back to 2004. However, the conflict is likely just shifting to another arena.
, a 2019 law that declared which categories of workers could be contractors and which must be payroll employees.that stemmed from a 2004 decision by Dynamex Operations West, a package delivery service, to convert its drivers from employees to contractors.
It was a huge win for California’s labor unions, which view contractor status as a way for employers to avoid union organization of their workers or provide benefits such as health insurance and workers’ compensation. Unions quickly urged the Legislature to codify the ruling and narrowly specify categories of workers that could be contractors.
The labor movement, oddly, did not mount an equally strong campaign against the measure, spending less than $20 million, and voters approved it by a 3-2 margin. Its approval, however, merely shifted the issue back to the courts in a lawsuit that challenged Proposition 22’s constitutionality. If the Supreme Court agrees with the appellate ruling, the transportation services could continue classifying their drivers as contractors. However, the one section of Proposition 22 tossed out by the appellate judges, which was aimed at making it almost impossible for the Legislature to amend its provisions, would open the door to another legislative clash. It would allow the Legislature to decree that contract drivers could, if they wish, form unions to bargain with the companies.
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