October 5, 2020
Workers' Injury Law & Advocacy Group
California, Gig Economy, Proposition 22
A 2018 landmark California Supreme Court decision called Dynamex made it harder for gig companies to claim their workers are independent contractors, and not employees. Gig companies save hundreds of thousands of dollars by misclassifying their employees as independent contractors, and thereby avoid paying legally required employee benefits, such as Unemployment Insurance, Minimum Wage, Overtime, Social Security, and Workers' Compensation. This important decision was codified in Assemblywoman Lorena Gonzalez’ Assembly Bill 5, that took effect Jan. 1, 2020. Uber and Lyft contend that AB5 does not apply to them and are fighting it with a November 2020 ballot initiative. California Attorney General Becerra brought a lawsuit against Uber /Lyft to enforce AB 5. An injunction issued against Uber/ Lyft to refrain from classifying their drivers as independent contractors in violation of Labor Code section 2570.3, during the pendancy of this action, but Uber/Lyft appealed, and the Ct. of Appeal has recently granted a stay of the injunction, with oral argument set for 10/13/20. I will summarize the legal analysis in the Dynamex decision, and the fight that has ensued since this decision and the passage of AB 5, with the struggle to define the future of work and the gig economy to protect workers rights .Expand summary
Program Titles and Supporting Materials
This program contains the following components:
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