As we previously reported, in November 2020, California approved Proposition 22, a measure that exempted gig workers from state labour law. It classified app-based gig workers as independent contractors, even if entitled to certain benefits and protections, like minimum earnings. 

The issue is not insignificant: employees are entitled to benefits, such as minimum wage, meal, and rest breaks, workers' compensation, and reimbursement of expenses, such as fuel, not provided for independent contractors. Differently, independent workers can define their schedules and work for several companies.

In August 2021, a California Court ruled on Proposition 22 to be unconstitutional. Overturning that ruling, in March 2023, The 1st District Court of Appeal determined that Proposition 22 must remain state law, signing a significant win for California's app-based companies.

The Service Employees International Union and a group of rideshare drivers, who filed the lawsuit challenging Proposition 22 in early 2021, appealed the Court of Appeal’s decision to the California Supreme Court, filing to review the decision. 

On 28 June 2023, the Supreme Court of California granted the request to determine the constitutionality of 2020's California Proposition 22, and is expected to rule on the issue by early 2024.

In the meantime, the Biden administration has raised the possibility of dealing with the issue and defining drivers as employees under federal law.

The issue of platform workers, as already reported, is global. Several countries have already regulated the matter through case law decisions and legislative proposals.