In the lead up to the historic November 3, 2020 election, Uber, Lyft and other gig economy companies poured more than $200,000,000 into the campaign to pass Proposition 22 in California. The opposition labor and union groups spent nearly $20,000,000 fighting Proposition 22. Proposition 22 passed by a margin of 58% vs. 42%. Proposition 22 exempts firms like Uber and Lyft from classifying their drivers as employees as was previously required by Assembly Bill 5 (“AB-5”).
AB-5 took the three-part test to determine whether a gig worker was an independent contractor and put it into law. AB-5 was specifically passed to protect workers’ rights, but Uber and Lyft refused to follow that law and instead chose to litigate AB-5’s applicability and lobby for the passage of Proposition 22. Proposition 22 considers App-based drivers to be independent contractors and not employees, although it did also enact labor and wage policies specific to App-based drivers.
Proponents of Proposition 22 believe the law protects “drivers’ preference to be independent contractors with the flexibility to work when, where and how long they want”. Opponents of Proposition 22 believe it is simply an end run around the protections afforded to workers under AB-5, which was intended to make sure gig workers are not exploited by companies and left without basic rights such as workers compensation and unemployment insurance.
The possible implications of Proposition 22 reach far beyond California and the ridesharing industry. Stay tuned!
This article is informational only and meant to provide guidance. It is not meant to be legal advice and it does not create an attorney-client relationship. For what to do in your specific situation, please consult with a qualified Construction Law attorney.
November 01, 2022
October 05, 2022
Mahyar was a big part in helping start our company and setting up our corporation. She also went to battle with a Billion dollar Corporation to keep our doors open when they tried everything to shut us down.
In 2008 -2009, our company was involved in a lawsuit with over 1 million dollars claimed against us. Mahyar Ghassemian handled our case expertly and conscientiously. She explained on a regular basis the progress of our case and how each of the actions of our opponent would ultimately affect our case. At no time did we feel alone or compromised as Mahyar boldly stayed her course which eventually provided us with the satisfactory outcome we had hoped to achieve. She will be our first call should the need arise in the future.
Many years ago an insurance carrier hired Mahyar Ghassemian to defend my construction firm in civil litigation. Not only was Ms. Ghassemian very knowledgeable and competent regarding the legal proceedings, but she was also personally vested in our well-being; she cared what happened. She counseled us regarding the various options, listened to our input and proceeded accordingly. In multiple cases with Ms. Ghassemian, we have never experienced a negative outcome. Today my first call when a potential legal issue is on the horizon is to Ms. Ghassemian. She is both extremely effective and cost conscious.
Small Firm Value – Large Firm Expertise