Proposition 22, also known as Prop 22, is a California state law that was approved by California voters in November 2020. It allows companies such as Uber, Lyft, and DoorDash to classify their drivers as independent contractors instead of employees. The law provides drivers with certain benefits and protection, such as earnings guarantees and healthcare subsidies, but these benefits are not as comprehensive as those provided to employees. Prop 22 was designed to counter California Assembly Bill 5 (AB5), which mandated gig workers be classified as employees. Major sponsors of Prop 22 included Uber, Lyft, and DoorDash.

Prop 22 has been a controversial law, with proponents touting the flexibility it provides to drivers, while opponents argue that the benefits and protection are inadequate. In March 2023, a California State appeals court overturned a previous court ruling that Prop 22 was unenforceable, which was seen as a big win for gig firms like Lyft and Uber.

However, in September 2021, a California Superior Court Judge ruled that Prop 22 is unconstitutional and unenforceable. The judge found that the ballot initiative infringes on the power explicitly granted to the California Legislature to regulate workers’ compensation. Prop 22 also included language that prevents the state legislature from passing laws that allow app-based workers to unionize, which the court ruled violated a constitutional provision requiring that ballot initiatives be limited to a single subject.

In summary, Prop 22 is a California state law that allows companies such as Uber, Lyft, and DoorDash to classify their drivers as independent contractors instead of employees. The law provides drivers with certain benefits and protection, but these benefits are not as comprehensive as those provided to employees. Prop 22 has been a controversial law, with proponents touting the flexibility it provides to drivers, while opponents argue that the benefits and protection are inadequate.