A California appeals court overturned most of a ruling that invalidated Proposition 22, the state’s voter-approved 2020 gig economy law that allows giant ride-hailing and delivery companies to classify their employees as independent contractors instead of as employees.

The 1st District Court of Appeal ruled that Proposition 22 had to disagree with a 2021 ruling that found central provisions of the law inconsistent with the state

constitution

make the law unenforceable and throw it out in its entirety.

However, the appeals court struck down a provision of law restricting certain changes in the law.

The court found

That

the ballot measure had incorrectly defined what an amendment is, in violation of the separation of powers principles of the state constitution. The court severed provisions of Proposition 22 that the

legislator legislator

to implement future legislative changes.

The lower court ruling, made by Alameda County Superior Court Judge Frank Roesch in August 2021, found

That

the law violates the state constitution by limiting the legislature’s ability to regulate workers’ compensation rules. The ruling also states that Proposition 22 violates a constitutional provision that requires initiatives to be limited to one subject.

Proposition 22 has remained in force through the appeal procedure.

The Protect App-based Drivers & Services Coalition, which supported Proposition 22, celebrated the ruling as a “historic victory for the nearly 1.4 million drivers who rely on the independence and flexibility of app-based work to earn income, and for the integrity of the California initiative system.”

“The Court of Appeal upheld the fundamental policy behind the measure,”

said

Molly Weedn, a coalition spokesperson,

said

to email.

A three-judge panel in San Francisco heard the case in December.

During the hearing,

Justice Tracie L Brown

during the hearing

questioned the provision in the law restricting law changes on collective bargaining as it falls outside the scope of the stated purpose of Proposition 22, and came up with the hypothetical idea of ​​removing one provision rather than the entire law.

Proposition 22 came into effect in early 2021. Uber, Lyft, DoorDash, Instacart and other app-based companies spent more than $200 million marketing the ballot for Californians as a boon to employees and customers alike.

For hundreds of thousands of drivers, proposal 22 retained the flexible schedules that come with remaining an independent contractor, but removed the protections afforded by a 2019 law, AB 5, that required gig workers in many industries to be classified as workers with stronger benefits such as a minimum wage, overtime and worker’s compensation in case of injury.