As we wrote here just several days ago, Californians were facing the seemingly unimaginable this week– the possibility of living without ride share services for the foreseeable future.

In short, a state court judge issue a temporary restraining order (“TRO”) requiring ride share companies to treat their drivers as employees in purported compliance with  AB 5, California’s controversial new law that only permits workers to be classified as independent contractors in most industries if they satisfy an “ABC” test.

After the same judge refused to stay the TRO during the pendency of the ride share companies’ appeal beyond the initial 10-day stay, the ride share companies made clear that they might cease operating in California effective midnight on Thursday, August 20. 2020, gearing up instead for the November ballot initiative when California voters will decide for themselves whether to pass Proposition 22, which would allow ride share and food delivery companies to treat drivers as independent contractors.

As thousands of Californians likely wondered aloud how they would go back to driving each other to the airport and finding designated drivers for evenings on the town, the Court of Appeal stepped in and issued an emergency stay of the TRO such that the ride share companies are not required to treat the drivers as employees – at least for now.

In the order, the Court of Appeal set a September 4, 2020 deadline for the ride share companies to submit sworn statements setting forth their "implementation plans" to comply with California’s controversial AB 5 within 30 days if the Court upholds the TRO and if Proposition 22 does not pass in November.

So, once again, the stage is set for a ballot showdown in November.  By passing Proposition 22, voters would effectively take this issue out of the courts’ hands.

And if you know how Californians have reacted the past few days to the mere possibility that they might not have ride share services for the foreseeable future, you might have a good sense how they will vote in California when a “no” vote on Proposition 22 might mean that ride share and food delivery companies will stop doing business in the state.

Of course, there will be a tremendous irony if Proposition 22 passes.  It is no secret that AB 5 was aimed at ride share and food delivery companies – and it could end up being the case that companies doing business in California must comply with the controversial statute except for the very companies at which it was aimed.

Back to Wage and Hour Defense Blog Blog

Search This Blog

Blog Editors


Related Services



Jump to Page


Sign up to receive an email notification when new Wage and Hour Defense Blog posts are published:

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.