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Judge Says California Gig-Economy Law Is Unenforceable

August 23, 2021

Via: SHRM

California voters approved Proposition 22 in November 2020, allowing gig-economy companies to classify app-based ride-hailing and delivery drivers as independent contractors if certain criteria are met. On Aug. 20, a state judge said the law is unconstitutional and unenforceable.

California uses a three-pronged “ABC” test to determine worker classification. The stringent test renders most workers employees unless their jobs fall under an exception.

Proposition 22 allows app-based companies to continue to classify drivers as independent contractors, so long as they provide drivers with certain benefits and develop anti-discrimination and sexual-harassment policies. The measure was supported by prominent ride-hailing and food delivery services, including Uber, Lyft and DoorDash.

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