August 2021

AB 5   How's Your App?

The American spirit has always been one that encompassed independence, individuality and grit.  That is one reason that the country grew as it did.  Unfortunately, in today's world forcing dependency seems to be the more important goal for many people.

A 2020 ballot proposition on the ballot allowed for Uber, Lyft, DoorDash, Instacart and other app-based businesses to classify their workers as independent contractors.  Let's remember that no one is forced to work for these businesses. 

The Service Employees International Union brought a lawsuit claiming that drivers be classified as employees with benefits such as minimum wage, overtime and workers' compensation in case of injury. 

Alameda County Superior Court Judge Frank Roesch ruled that parts of  Proposition 22 are unconstitutional because they infringe on the power of the Legislature to include app-based drivers under the state's workers compensation law.  Roesch also ruled that by including language aimed at preventing drivers from unionizing, the ballot measure also violates a constitutional provision that requires laws and initiatives to be limited to a single subject.

This decision will be appealed.  It will probably go first to the State Court of Appeals and will eventually be decided by the California Supreme Court.  This process could take a year.