The California Supreme Court's decision reaffirms that Proposition 22 does not infringe upon the California Legislature's authority to regulate workers' compensation systems. ... Proposition 22 does not permanently restrict the Legislature from extending benefits to independent contractors in the future.
For gig economy companies, this ruling alleviates a significant regulatory uncertainty and eliminates a very significant legal risk. Had Proposition 22 been invalidated by the California Supreme Court, these companies would have potentially faced substantial additional costs associated with reclassification.
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