employee vs independant contractor expenses

Employee vs independant contractor expenses drivers#

Arnold Schwarzenegger, who has said he supports keeping Prop 22 in place because it received the support of the voters.Īs of mid-June, the appeals court had not yet set a date for arguments in the case. The case has prompted outside groups and individuals to file friend-of-the-court briefs in support of both workers and the state, including actor and former Gov. “This is well within the authority of the electorate under initiative power.”Īdditionally, the state argued the law does not violate other aspects of the Constitution. “The initiative merely impacts the threshold classification test to determine whether individuals engaged in a particular type of work are employees or independent contractors,” he said. He asserted that the measure does not conflict with the legislature’s power to create a system for workers’ compensation because Prop 22 does not seek to modify the worker’s compensation system. In the state’s opening brief, California Attorney General Rob Bonta argued Judge Roesch’s decision was erroneous. The state has appealed the ruling to the First District Court of Appeal. Specifically, Alameda County Superior Court Judge Frank Roesch ruled that Prop 22 conflicts with the legislature’s power to create and enforce a worker’s compensation system and violates the Constitution’s separation-of-powers and single-subject provisions. Last year, a California Superior Court judge agreed, finding the initiative unconstitutional and unenforceable. After the law went into effect, plaintiff Hector Castellanos and other workers challenged the measure, arguing it violates the California Constitution.

Employee vs independant contractor expenses drivers#

Prop 22 exempts app-based companies’ drivers from the standards of AB5 that classified them as employees, offering them alternative benefits instead. The issue of whether a worker is an employee or independent contractor is one that both California and other states have gone back and forth on. The question of whether a worker is an employee or an independent contractor is important because while employees are entitled to minimum wages, overtime, and work expenses, independent contractors are not. In AB 5, the state legislature codified a California Supreme Court decision which put the burden on employers through the so-called “ABC test” to show that someone was an independent contractor and not an employee. Prop 22 was an industry response to 2019 state legislation, Assembly Bill 5, which set standards for classifying such workers as employees. The law passed with 59 percent of the vote. California, has to do with Proposition 22, also known as the Protect App-Based Drivers and Services Act, a 2020 ballot measure which received heavy financial backing from Uber, Lyft and other app-based companies. The state of California is appealing a judge’s 2021 ruling striking down a voter-approved ballot measure exempting certain app-based workers from legislation requiring them to be classified as employees.