Uber Faces Lawsuit Over Alleged Violations of Proposition 22

A new lawsuit filed in San Francisco Superior Court alleges that Uber Technologies Inc. is violating California's Proposition 22 by failing to provide necessary benefits and an appeals process for its drivers. Proposition 22, passed by voters in 2020, allows app-based drivers to be classified as independent contractors, provided certain conditions are met, including the establishment of an appeals process for terminated drivers. Rideshare Drivers United, representing over 20,000 drivers, claims that Uber has not fulfilled these obligations, thus undermining the law's intent.

20,000 drivers sue Uber for allegedly failing to grant blocked drivers appeal in CaliforniaCalmattersReuters

Proposition 22 was designed to exempt companies like Uber, Lyft, DoorDash, and others from classifying their drivers as employees, which would entitle them to benefits such as overtime pay and unemployment insurance. The law requires that drivers receive a guaranteed minimum wage of 120% of the state minimum wage for active driving time, health care stipends, and an appeals process for deactivations. However, the text of the law does not specify the requirements for the appeals process, leading to ambiguity in its enforcement.

20,000 drivers sue Uber for allegedly failing to grant blocked drivers appeal in California

Many drivers have reported difficulties in appealing their deactivations. Devins Baker, a former Uber driver, expressed frustration over being deactivated without clear reasons, stating that he struggled to navigate the appeals process, often encountering automated responses. Another driver, Mirwais Noory, shared that his deactivation over alleged safety concerns left him financially strained while supporting his family. Jason Munderloh, chair of Rideshare Drivers United, emphasized that the lack of an appeals process leads to severe financial hardship for drivers, as they are not eligible for unemployment benefits.

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Uber has responded to the lawsuit by labeling it a "publicity stunt" and asserting that it provides a clear appeals process for drivers. Ramona Prieto, an Uber spokesperson, criticized the lawsuit and defended the company's compliance with Proposition 22, claiming that drivers are informed about the appeals process through company communications. However, critics argue that the process lacks transparency and fails to meet due process standards.

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The lawsuit highlights discrepancies in how Uber implements Proposition 22. While Uber maintains that it complies with the law, Rideshare Drivers United argues that the company does not provide adequate information regarding earnings or the reasons for driver deactivations. Additionally, there is no state agency assigned to enforce Proposition 22, raising concerns about accountability.

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The lawsuit seeks a court declaration that Uber has violated Proposition 22 and should not be allowed to classify its drivers as independent contractors. As legal challenges to Proposition 22 continue, the outcome of this case could have significant implications for the gig economy in California and beyond.

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• “Uber has not met the conditions to take advantage of Prop. 22,” — Shannon Liss-Riordan, Attorney for Rideshare Drivers United

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• “It has turned my life upside down.” — Mirwais Noory, Former Uber Driver

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• “Once they’re deactivated, there is no unemployment insurance (because drivers are not considered employees). This leads to poverty and desperation.” — Jason Munderloh, Chair of Rideshare Drivers United

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• “fight this publicity stunt in court.” — Ramona Prieto, Uber Spokesperson

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