Proposition 22 Aftermath: Where Gig Worker Classification Stands Now?

Your employer can be held accountable for wage and hour violations in an individual or class action lawsuit. A Riverside County wage and hour attorney at Skapik Law Group can help you get justice and accountability.

Although some of the protections afforded by ab5 have been watered down by the efforts of rideshare companies, gig workers still have rights under the law. Those who were impacted by Proposition 22 can still file a lawsuit for being underpaid under certain circumstances. The rights of other workers to be properly classified as employees when they meet certain criteria remain undisturbed.

If you have been misclassified as an independent contractor, or you have been underpaid in any way, speak to a Riverside County wage and hour lawyer at Skapik Law Group by calling us at (909) 398-4404. Our efforts will give you power when you may have felt powerless in the face of your employer’s actions.

Proposition 22 Somewhat Limited the Reach of AB5

In 2020, a new law became effective in California that dictated when businesses are allowed to classify workers as independent contractors. This law was intended to codify the so-called “ABC Test” that specified when exactly gig workers can be treated as independent contractors and when they must be classified as employees. While this law was presumably aimed at providing protections for those who may wrongfully be treated as independent contractors, it was far from the end of the story. Businesses who were affected by this new law went into overdrive to try to minimize the effects that the statute would have on them.

True to form, rideshare companies and other businesses that benefited from the status quo before the law was passed focused large amounts of resources on trying to water down AB5. Not long after the original bill was signed into law, these companies spent hundreds of millions of dollars in an attempt to place Proposition 22 on the ballot during the 2020 election. Their efforts succeeded, and workers who drive for companies like Uber, Lyft and DoorDash are exempted from AB5 to an extent.

Those Affected By Proposition 22 Still Have Rights

Where things stand now is that some gig workers can still be classified as independent contractors, albeit with some key protections remaining in place. The result is that there is a hybrid system that impacts certain gig workers, like Uber or Lyft drivers. They still have some protections afforded to them, although they do not receive certain benefits that statutory employees have, such as workers’ compensation if they are injured on the job.

Specifically, gig workers who are affected by Proposition 22 are assured of earning an hourly wage that is 120% of California’s minimum wage (which will be $16.90 per hour beginning January 1, 2026) for each hour that they work. If a driver works 15 hours or more per week, they are entitled to a partial healthcare subsidy from the company. They must also receive insurance coverage from the company that covers Medical costs and liability. Finally, these gig workers are also protected by anti-discrimination laws that would apply to any other workers. However, in the wake of the passage of Proposition 22, drivers do not receive unemployment insurance, overtime, or paid sick leave as employees would.

Proposition 22 withstood numerous lawsuits that challenged its constitutionality. In 2024, the California Supreme Court issued a decision that upheld Proposition 22 and left it as valid law. Still, companies like Uber and Lyft still face legal actions filed due to violations of certain wage and hour laws. In spite of the fact that rideshare companies wield an enormous amount of political power due to their largesse, the California Labor Commissioner has initiated legal action against these companies for misclassification of employees. However, the lawsuit only covers the time period between 2017 and 2020, before the passage of AB5.

If you are a worker who has been impacted by Proposition 22, know that you still have legal rights. It is still possible for companies like Uber and Lyft to violate the law when it comes to paying you. Specifically, if you have not earned the minimum wage required under the new law, you can file a lawsuit against these companies, either on an individual or class action basis (presuming that there were other workers like you who suffered the same exact harm.

Contact a Riverside County Wage and Hour Law Firm

If your employer has not provided you the pay to which you are legally entitled, or they have forced you to work off the clock, speak to a Riverside County wage and hour lawyer at Skapik Law Group. We can review your case during a free initial consultation, which you can schedule by filling out an online contact form or by calling us today at (909) 398-4404.