News & Commentary March 15, 2023

[Omaha Steve]

https://onlabor.org/march-15-2023/

By Jacqueline Rayfield

Jacqueline Rayfield is a student at Harvard Law School.

In today’s news and commentary, a California appeals court reversed a lower court ruling on Proposition 22, the Michigan Senate voted to repeal a 2012 right-to-work law restricting labor organizing, and American Airlines pilots authorized a strike vote.

On Monday, a California appeals court found that parts of Proposition 22 should remain law. Proposition 22 provided that gig economy workers like Uber and Lyft drivers should be classified as independent contractors and therefore provided limited employment benefits compared to traditional employees. Under a gig model, Lyft and Uber are not required to provide drivers with unemployment insurance, health insurance, or business expenses. This proposition passed as a ballot measure in 2020 after gig economy companies like Uber and Lyft spent $200 million promoting the measure to pass.

The appeals court found that a piece of the proposition limiting the possibility for collective bargaining right violated separation of powers and should be severed from the rest of the bill. The court upheld portions of the proposition limiting legislative oversight of the gig economy. While Uber’s chief legal officer hailed this decision as a “victory for app based workers,” the Service Employees International Union raised concerns about growing corporate influence in California politics. One dissenting judge in Monday’s decision argued that the entire proposition should be invalidated. Read the full decision here.

FULL story at link above.