Drivers and union challenge Prop. 22's constitutionality

A group of ride-hailing drivers and the Service Employees International Union have filed a lawsuit to challenge the constitutionality of Proposition 22, the ballot measure recently passed in California that enshrines drivers as independent contractors (with some benefits).

Why it matters: Prop. 22 was a response from gig companies to AB5, a state law that went into effect last January, and put in place stricter requirements for classifying workers as contractors. Having drivers as contractors instead of employees (with full benefits) is central to these companies' business models, prompting their aggressive action to eschew AB5.