Union sues to block California gig worker initiative voters passed 2 months ago
Rideshare drivers and one of the largest unions in California are suing the state, seeking to overturn an initiative voters passed in November that exempts drivers for Uber, Lyft and other app-based companies from a labor law that requires them to provide employment benefits to more workers.
The lawsuit filed Tuesday in the California Supreme Court from the drivers and SEIU represents the first legal challenge over Proposition 22, the most expensive ballot initiative in California’s history.
The union contends the initiative violates the state’s constitution by limiting the power of the Legislature to regulate labor practices of the companies.
“We look forward to the court affirming that gig companies cannot strip workers of their fundamental right to bargain for better pay and working conditions — and that corporations alone should not dictate the laws in our state,” SEIU Local 721 and SEIU California President Bob Schoonover said in a press release announcing the lawsuit.
Under Prop. 22, drivers get a wage floor and occupational accident insurance; some drivers are also eligible for healthcare subsidy. But because they are considered independent contractors, drivers are not getting paid sick leave, unemployment insurance and workers’ comp that are normally provided to employees.
The plaintiffs said Prop. 22 unconstitutionally limits the ability of the Legislature to establish a workers’ compensation system for gig workers.
The plaintiffs also say Prop. 22 violates the state constitution with a provision that raises the threshold for the Legislature to amend the new law. The clause says the Legislature can only change the law with approval from seven-eights of lawmakers, and any amendment must be “consistent” with the initiative’s intent.
SEIU is joining the case because those provisions and others in Prop. 22 interfere with the drivers’ ability to collectively bargain for their rights, said Scott Kronland, a lawyer representing the plaintiffs.
“We’ll continue to stand with them as they continue to fight to have the right to have a voice at the table,” said Alma Hernández, the executive director at SEIU California.
In the press conference, Lyft driver Mike Robinson said Prop. 22 would create a “second-class status” for workers like him. He has seen his pay and working conditions get worse over the last five years, he said.
“It’s been clear to me for a long time that those companies see drivers as disposable.”
But in a statement provided by the Yes on 22 campaign, a part-time Uber driver and a retiree in Modesto Jim Pyatt said the lawsuit seeks to undermine the “clear democratic will of the people” who approved Prop. 22 with 58% of the votes.
“Nearly 10 million California voters including the vast majority of app-based drivers — passed Prop 22 to protect driver independence, while providing historic new protections. Voters across the political spectrum spoke loud and clear, passing Prop 22 in a landslide,” said Pyatt, a former employee at The Modesto Bee.
The legal challenge is the latest in the fight in California after the passage of Assembly Bill 5, a landmark labor bill passed in 2019 to require businesses to provide employment benefits to more workers.
After the passage of AB 5, California officials sought to crack down on Uber, Lyft and other gig companies, saying they are violating the law by denying benefits to thousands of workers. In response, those companies threatened to leave California and poured more than $200 million to push for Prop. 22.
It’s uncertain whether the attorney general’s office — which actually has sued Uber and Lyft to enforce AB 5 — will defend the state against the drivers and SEIU.
“We’ll review the complaint and respond in court as appropriate,” an office spokesperson said in a statement.
This story was originally published January 12, 2021 at 10:15 AM.
