Excessive Court docket Denies Constitutional Problem to Prop. 22| Employees Compensation Information

Friday, February 5, 2021 | 436 | 0 | 20 min read

The California Supreme Court declined to hear a constitutional challenge to the election initiative that allows gig companies to continue to classify drivers as independent contractors.

The lawsuit filed in January by a handful of drivers and the Service Employees International Union alleged that Proposition 22 had usurped the legislature’s power and eliminated its ability to give workers the right to organize or access the state’s compensation scheme Los Angeles Times report.

The Supreme Court did not explain its 5-2 decision not to hear the challenge. The court left open the possibility that the lawsuit could be filed in a lower court, but plaintiffs would not say whether they wanted to pursue the case, according to a report from the San Francisco Chronicle.

Proposal 22, approved by nearly 59% of voters in November, allows companies like Uber and Lyft to continue classifying drivers as employees. The companies are obliged to take out occupational accident insurance instead of employee compensation. The initiative requires accident insurance to cover up to $ 1 million in medical expenses and temporary disability payments equal to two-thirds of a driver’s average weekly earnings.

The initiative does not require permanent disability benefits and does not include vocational rehabilitation or return to work programs comparable to those available in the comparative labor system.