As California — and the rest of the nation, for that matter — tries to figure out what to do with gig workers, a protracted legal battle has come out in favor of the little guy. At least for the moment. 

The case pits a former Grubhub driver, Raef Lawson, against the company, pursuing minimum wage, overtime and expense reimbursement claims. But the law is far from straightforward. 

A tangled web 

The state has been going back and forth about how to categorize people who take on app-based work, such as Uber drivers. In 2019, the legislature piggybacked on a California Supreme Court decision, codifying a ruling that put the burden on employers (a so-called “ABC test”) to show that someone was an independent contractor and not an employee. The idea was to stop companies from using contractor status to avoid having to offer benefits, overtime pay, and other perks or protections. 

Then, it became clear that the provisions didn’t help everyone — such as those whose careers (i.e. freelance writing) had long relied on independent contractor status. While the legislature worked to adjust the new law, California voters approved a measure (Proposition 22) that allowed app-based transportation and delivery drivers to remain as independent contractors but get some alternative benefits. (A few months ago, a state superior court ruled that the law was unconstitutional and unenforceable — we’ll see where that ends up.) 

Anyway, the text of the voter-approved measure, effective a year ago, didn’t specify that it was applicable retroactively. But the ABC test was: A January 2021 ruling by the California Supreme Court said the “ABC test applies retroactively to claims rooted in wage orders.” 

Back to the present 

All this took place while the Lawson-Grubhub case remained pending. 

Given these overlapping facts, Grubhub tried to argue that the passage of Proposition 22 meant the ABC test wasn’t applicable. The 9th U.S. Circuit Court of Appeals disagreed, sending the matter back to district court for the ABC test and consideration of Lawson’s minimum wage, overtime and expense reimbursement claims. 

What does it mean for me? 

It could mean a lot of things. If you’re happy as an independent contractor, you can stay that way. If you work in the gig economy, keep your eyes on the courts. If you had wage disputes with gig employers that date back beyond December 2020, you may have a case.

We’ll be watching the district court as it applies the ABC test, as well as whether Proposition 22 remains applicable. 

As this situation demonstrates, employment law and conflict with any type of employer can be intimidating and confusing. If your employer isn’t treating you fairly, the experienced employment lawyers at Keller Grover offer free consultations to help you understand your rights, protections and options. In more than 25 years litigating fraud and employment cases, we have recovered hundreds of millions of dollars for clients and class members.