CALIFORNIA—On Wednesday, February 3, the California Supreme Court voted 5-2 to reject a challenge by unions and drivers to overturn Proposition 22, which was approved by voters in November 2020.
Passed on November 3 by 58 percent, Proposition 22 excludes ride and delivery services from being classified as state employees in California. Companies like Uber and Lyft spent more than $200 million to get it passed and threatened to leave the state of California if it failed.
Proposition 22, which went into effect in December 2020, is the most expensive ballot measure in California history.
The lawsuit, filed by plaintiffs including the Service Employees International Union California State Council, alleges that Proposition 22 is “invalid and unenforceable.”
The plaintiffs decided to go straight to the CA Supreme Court instead of starting at the lower courts because “this matter presents pure legal issues of broad public importance that require speedy and final resolution.”
According to the lawsuit, the plaintiffs argue that voters were “grossly deceived” into supporting it because they were “not told they were voting to prevent the Legislature from granting the drivers collective bargaining rights” and not “providing incentives for companies to give app-based drivers more than the minimal wages and benefits provided,” by the proposition.
While the CA Supreme Court rejected the challenge, the plaintiffs can still file the lawsuit in a lower court.