On November 3, 2020, the voters enacted Proposition 22, which establishes independent contractor status for drivers associated with app-based on-demand transportation and delivery companies like Uber, Lyft and Door Dash. Companies that set up a Prop. 22-compliant structure are exempt from the previously adopted AB 5/ABC tests for driver misclassification.
AB 5/ABC have unleashed thousands of unjustified misclassification suits throughout California. Companies associated with the transportation of people and delivery of packages and food may find in Proposition 22 a safe harbor from the unscrupulous plaintiff litigation that has attacked companies using independent contractors in the transportation sector.
With deep experience consisting of 20 years in the transportation industry as well as with gig economy companies, our attorneys can assist your company in establishing a Proposition 22-compliant program that protects independent contractor drive forces from employee liability. Marron Lawyers can guide you through the process of becoming a Proposition 22-compliant transportation company. This includes the conditions to come within Prop 22; driver contracts; company obligations under Prop 22; CA Public Utilities Commission registration as a Transportation Network Company (TNC) and development of a required app-based dispatch system.
The Firm’s attorneys have been working in the transportation-related independent contractor sector since 2000; handling app/technology-based dispatch systems since 2003 and advising on PUC issues since 2007. Our lawyers are among an elite few who have tried misclassification of driver cases to verdict and prevailed (2017, statewide trial, independent contractor status upheld for all 1500+ drivers after 4.5 month trial).
For further information, contact Paul Marron, Esq. ( or Paul Arenas, Esq. ()