California continues to be the testing ground for the future of gig work in America. With AB 5 and Proposition 22 still shaping how companies classify workers, upcoming court decisions and legislative proposals could again change the rights and responsibilities of both workers and employers.
Under AB 5, most workers are presumed to be employees unless a company can meet the strict “ABC test.” That means many gig workers would qualify for benefits like minimum wage, overtime, and unemployment insurance. However, Proposition 22, passed in 2020 and recently upheld by the California Supreme Court, carved out an exception for app-based rideshare and delivery drivers—allowing them to remain independent contractors under specific conditions.
Now, new bills and legal challenges are raising fresh questions. Lawmakers are considering measures that could expand benefits and bargaining rights for app-based workers while keeping their contractor status. Meanwhile, federal scrutiny and potential updates to Department of Labor rules could redefine what it means to be an “independent contractor” nationwide.
For California gig workers, these developments could have major consequences—affecting pay rates, tax treatment, access to workers’ compensation, and even eligibility for union representation. Employers, too, must stay alert: misclassification risks can lead to costly litigation, back pay, and penalties.
At Lavi & Ebrahimian LLP, we stay at the forefront of employment law to protect California workers’ rights. Our attorneys understand how shifting laws impact gig workers, independent contractors, and traditional employees alike.
If you believe your classification or pay doesn’t reflect the work you perform, our experienced California employment lawyers can help you understand your rights and options.
Contact Lavi & Ebrahimian LLP today at 886-470-2189 for a free, confidential consultation.