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Prop. 22 ruled unconstitutional, a blow to CA gig economy law

California’s large ride-hailing and supply organizations suffered a significant setback Friday as a condition Top-quality Courtroom decide invalidated a 2020 ballot proposition that authorized Uber, Lyft, DoorDash and other firms to classify their personnel as independent contractors.

In a lawsuit introduced by the Support Employees International Union, Alameda County Outstanding Court docket Choose Frank Roesch ruled that pieces of Proposition 22 are unconstitutional since they infringe on the electric power of the Legislature to involve app-dependent motorists less than the state’s workers’ payment legislation.

Gig economic system providers used far more than $220 million final year in the nation’s costliest-at any time ballot initiative marketing campaign just after the California Legislature passed a regulation, AB 5, necessitating motorists to be labeled as workforce with benefits these as bare minimum wage, extra time and workers’ compensation in scenario of personal injury.

“They attempted to raise their revenue by undermining democracy and the condition Structure,” stated Bob Schoonover, president of SEIU California State Council, in applauding the ruling. “For two years, motorists have been saying that democracy can’t be purchased. And today’s selection reveals they were being ideal.”

Uber pushed back again from the ruling in a statement Friday, emphasizing that California’s lawyer normal beforehand had “strongly defended” Proposition 22’s constitutionality.

“This ruling ignores the will of the overwhelming greater part of California voters and defies the two logic and the legislation,” the corporation said. “We will enchantment and we count on to earn.”

Californians overwhelmingly approved the ballot measure, which won with 58% of the vote in the November election.

The California Supreme Courtroom previously denied a constitutional challenge to Proposition 22 in February. The plaintiffs refiled the suit in a lower venue, Alameda County Remarkable Courtroom, before long just after the setback.

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