On April 3, five organizations - Chamber of Progress, NetChoice, Asian Industry B2B, the Silicon Valley Leadership Group, and sf.citi - submitted an amicus brief urging the California Supreme Court to uphold Proposition 22. This voter-approved measure from 2020 classifies app-based transportation and delivery drivers as independent contractors.
The International Organization of Employers reported that a California court found Proposition 22 (Prop. 22) unconstitutional in August 2021. However, in March 2023, an appellate court overturned this ruling, thereby preserving Prop. 22 as California state law. The Service Employees International Union appealed this decision, leading the state's Supreme Court to agree to review it. A ruling on Prop. 22 is expected from the Supreme Court later this year.
According to the brief submitted by Chamber of Progress and other organizations, they have stakes in the court's decision regarding Prop. 22 because their members and partners include app-based delivery and transportation companies as well as individuals who participate in app-based work. They stated that these companies and individuals rely on the flexibility of independent contractor relationships and that Prop. 22 protects their choice to engage in such work. They added that Prop. 22 "provides important social goods and economic opportunities for millions of Californians, including communities of color and women."
In their brief, these organizations also noted that the emergence of app-based gig work has resulted in widely available, flexible opportunities "to the benefit of workers and customers alike." Through the gig economy, millions can "work on their own terms," either using gig work as their primary source of income or as supplemental income. They maintained that Prop. 22 "protects and respects worker autonomy" while also providing those who choose to work as independent contractors with benefits such as subsidies for health care, accident insurance, and guaranteed earnings. According to them, reclassifying these workers as employees would "significantly reduce the income-earning opportunities of the drivers who currently work as independent contractors."
As reported by Axios, approximately 5% of California's total workforce engages in app-based work for companies such as Uber, Lyft, and Doordash. The state's gig workers contributed $38 billion to California's economy in 2022.
Chamber of Progress is a tech industry coalition that advocates for policies ensuring all Americans benefit from technological advancements, according to the brief. NetChoice is a trade association of online businesses opposing policies that could negatively impact the operation and innovation of Internet-based business. Asian Industry B2B represents Southern California-based Asian-owned businesses supporting independent contractors' rights. The Silicon Valley Leadership Group represents companies and workers of the "Innovation Economy." sf.citi is a San Francisco-based trade association.