Opinion: After court ruling, California’s gig worker battle takes new turn
The seemingly perpetual political and legal battle over whether gig workers for Uber, Lyft, Doordash and services are contractors or employees took another turn last week and may go full circle – back to the state Supreme Court and possibly a second trip through the Legislature.
The legislation was sought by labor unions to implement a 2018 state Supreme Court ruling 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.
After Gov. Gavin Newsom signed AB 5, the affected companies launched an initiative to exempt their drivers and pledged tens of millions of dollars to qualify and pass it. Ultimately they spent more than $200 million on Proposition 22, contending that their contractor systems provided drivers with flexibility and they would receive some employee-like protections and benefits.
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