PROP 22 UNCONSTITUTIONAL?!
By Ward Heinrichs Esq., San Diego Employment Attorney
BIG BLEND RADIO INTERVIEW: San Diego attorney Ward Heinrichs gives an update on California’s Prop 22 and ABC Law for independent contractors. Watch here in the YouTube player or download or listen to the podcast on Podbean or SoundCloud.
You remember Prop 22, right? It was on the 2020 ballot in California. Prop 22 exempted rideshare companies like Uber, Lyft, and DoorDash from the new independent contractor law in California called the ABC law. Under the ABC law, the drivers for those rideshare companies are most likely employees. In contrast, the business model of the rideshare companies designated their drivers as independent contractors. Because Prop 22 exempted the rideshare company drivers from the ABC law, the companies have a much better chance of convincing a court that their drivers are independent contractors.
Recently, a judge ruled that Prop 22 violates the California Constitution. The case is Hector Castellanos v. State of California, and the trial judge said that the California Constitution gives the California Legislature the exclusive power to regulate compensation for workplace injuries. According to that reasoning, Prop 22 regulated compensation for workplace injuries but failed to do so through the California Legislature. Therefore, because the regulation was accomplished by direct vote of the people of California, and not by vote of the Legislature, it is unconstitutional.
The trial judge also said that Prop 22 may not have violated the California Constitution if it had amended the constitution, rather than merely amended statutory regulations. In other words, if Prop 22 had changed the California Constitution to say that the Legislature did not solely have the power to regulate compensation for workplace injuries, then Prop 22 may not have violated the state Constitution.
The California appellate court, and probably the California Supreme Court, will make the final decision about Prop 22’s constitutionality. Stay tuned!
Based in San Diego, California the Employment Law Office of Ward Heinrichs represents both employers and employees in almost all areas of labor law. He and his firm litigate cases that have been filed in many different parts of California. Visit www.BestEmploymentAttorneySanDiego.com
