Drivers to Sue Uber: Prop 22 Faces Massive Legal Challenge in California

More than 20,000 drivers in California are preparing legal action against Uber, accusing the company of failing to comply with key provisions of the state’s gig worker law, Proposition 22 (Prop 22).

The lawsuit is being coordinated by Rideshare Drivers United, which says Uber has denied drivers a proper appeals process after being removed, or “deactivated” from the platform.

At the heart of the dispute is Prop 22, a 2020 law that classifies app-based drivers as independent contractors rather than employees, while still guaranteeing them certain protections. One of those protections, according to the drivers, is the right to challenge terminations through a formal appeals system.

The group argues that Uber has not provided a “bona fide” process that meets due process standards, leaving many drivers unable to contest sudden deactivations. As a result, affected drivers claim they have suffered financial hardship and emotional distress.

“Drivers have had no real recourse to challenge their terminations,” the group said, adding that the company’s failure to comply undermines its ability to classify drivers as independent contractors under California law.

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Prop 22 itself was heavily backed by major gig economy companies, including Uber, Lyft, DoorDash, Instacart, and Postmates, which collectively spent around $200 million to secure its passage.

The law guarantees benefits such as a minimum earnings floor set at 120% of the local minimum wage, healthcare stipends for eligible drivers, injury compensation, and safety protections.

Despite these provisions, the drivers’ group insists that the lack of a functional appeals system represents a critical breach of the law.

Uber, however, maintains that it complies with Prop 22 requirements, pointing to existing policies on earnings guarantees, healthcare support, and insurance coverage.

The case is expected to gain more clarity following a planned press conference by the drivers’ legal team, led by attorney Shannon Liss-Riordan.

With over 1.4 million gig workers operating in California, the outcome of the dispute could have significant implications for the broader gig economy and how companies balance flexibility with worker protections.