https://www.sfchronicle.com/tech/article/Prop-22-the-gig-worker-exemption-for-Uber-and-16401915.php Skip to main content Currently Reading Prop. 22, the gig worker exemption for Uber and Lyft, is ruled unconstitutional * Subscribe Subscribe * e-edition * Sign In * [ ] * Climate + Drought + Fire Tracker + Quake Tracker + Drought Map + Air Quality Tracker + Wildfires * Video & Visuals * Subscribe * About Us + Newsroom News + Chronicle Store + Season of Sharing + Terms of Use + Privacy Notice + Do Not Sell My Info + Advertise With Us * Bay Area + Data + Housing Crisis + PG&E + Transit + SF Homeless Project + COVID-19 Map + San Francisco + COVID-19 + Crime + Health * Sports + Giants + Warriors + 49ers + A's + Sharks + High School + College * Politics + Recall Election + Election Results + Voter Guide * Tech + VisionSF * US & World * Opinions * Food + Top Wineries + Top Restaurants + Restaurants + NorCal Brewery Map + Wine, Beer & Spirits * Travel + Outdoors + Tahoe * Vault: Archive * Podcasts + The Doodler + Chronicled + Extra Spicy + Fifth & Mission + Total SF + It's All Political + A's Plus + Warriors Off Court + Giants Splash * Obituaries * In-Depth * Real Estate + Find a Home * Datebook + Movies & TV + Music + Theater + Art & Exhibits + Dance + Classical + Books + Festivals * Membership + Newsletters + About Membership + Exclusive offers + Join Now + e-edition + App + Manage my account * Comics & Puzzles + Bad Reporter + Quizzes Most Popular * A photo of Ellen Chung, left, and John Gerrish, holding their 1-year old daughter, Muji. 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One of California's last old-school, family-owned ski areas to change hands Tech Prop. 22, the gig worker exemption for Uber and Lyft, is ruled unconstitutional Roland Li Aug. 20, 2021Updated: Aug. 20, 2021 9:10 p.m. Facebook Twitter Email Comments App-based drivers from Uber and Lyft protest Proposition 22 in a caravan in front of City Hall in Los Angeles in October 2020. Friday, the proposition was ruled unconstitutional. App-based drivers from Uber and Lyft protest Proposition 22 in a caravan in front of City Hall in Los Angeles in October 2020. Friday, the proposition was ruled unconstitutional. Frederic J. Brown/AFP via Getty Images 2020 Proposition 22, which exempts gig work companies like Uber and Lyft from treating drivers as employees, is unconstitutional, a judge ruled Friday. The measure, which 59% of state voters supported last fall, illegally "limits the power of a future legislature to define app-based drivers as workers subject to workers' compensation law," Alameda County Superior Court Frank Roesch ruled. The judge's order found that Section 7451 of the measure is unconstitutional because it "defines unrelated legislation an 'amendment'" to the measure, making the entire measure unenforceable. The section states that any future laws related to collective bargaining for app drivers must comply with the rest of Prop. 22, which violated the requirement that ballot measures focus on a single subject, Roesch ruled. "It appears only to protect the economic interest of the network companies in having a divided, ununionized workforce, which is not a stated goal of the legislation," he wrote. The measure also requires a seven-eighths vote of approval to pass any amendments in the state Legislature, which is unconstitutional, Roesch ruled. The ruling is a major blow to ride-hailing and delivery tech companies, which could face hundreds of millions of dollars in additional labor costs, including paying for health care and other benefits if the ruling stands. However, the groups plan to appeal and the proposition will remain in effect as the court case continues. "We believe the judge made a serious error by ignoring a century's worth of case law requiring the courts to guard the voters' right of initiative. This outrageous decision is an affront to the overwhelming majority of California voters who passed Prop. 22," said Geoff Vetter, spokesman for the Protect App-Based Drivers & Services Coalition, which backed the measure and plans to file an appeal. Uber, Lyft, DoorDash, Instacart and others poured more than $220 million to back Prop. 22, persuading voters to keep drivers and deliver workers as independent contractors. The measure exempted the companies from 2019's AB5, a state law that required gig workers to receive employee benefits. "This ruling ignores the will of the overwhelming majority of California voters and defies both logic and the law," an Uber spokesperson said in a statement. "We will appeal and we expect to win. Meanwhile, Prop. 22 remains in effect, including all of the protections and benefits it provides independent workers across the state." The SEIU California union and drivers sued to overturn the measure earlier this year. "Today's ruling by Judge Roesch striking down Proposition 22 couldn't be clearer: The gig industry-funded ballot initiative was unconstitutional and is therefore unenforceable," Bob Schoonover, president of SEIU California, said in a statement. "They tried to boost their profits by undermining democracy and the state constitution. For two years, drivers have been saying that democracy cannot be bought. And today's decision shows they were right." Air Quality Tracker Check levels down to the neighborhood Ratings for the Bay Area and California, updated every 10 minutes William Gould IV, a Stanford law professor and former chairman of the National Labor Relations Board, said he believes the ruling will stand on appeal at the California Supreme Court. The seven-eighths rule interferes with the Legislature's constitutional ability to amend the measure, said Gould, who opposes Prop. 22. "I believe that it was special interests' initiative, promoted by the very moneyed interests whose power that the whole system was designed to limit," he said. Roland Li is a San Francisco Chronicle staff writer. Email: roland.li@sfchronicle.com Twitter: @rolandlisf Fifth & Mission The Chronicle's flagship news podcast. Listen and subscribe on your favorite app. Click the player below for the latest episode. * Air Quality Tracker Check levels down to the neighborhood Ratings for the Bay Area and California, updated every 10 minutes Written By Roland Li Reach Roland on Roland Li covers commercial real estate for the business desk, focusing on the Bay Area office and retail sectors. He was previously a reporter at San Francisco Business Times, where he won one award from the California News Publishers Association and three from the National Association of Real Estate Editors. He is the author of "Good Luck Have Fun: The Rise of eSports," a 2016 book on the history of the competitive video game industry. Before moving to the Bay Area in 2015, he studied and worked in New York. He freelanced for the Wall Street Journal, the New York Times and other local publications. His hobbies include swimming and urban photography. 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