California Gig Workers Still Can Sue for Wages After Prop 22 (1)

Gig companies such as Uber Technologies Inc. and Lyft Inc. will continue to defend some driver lawsuits in California seeking unpaid wages, overtime, and other labor benefits despite the passage of Proposition 22, thanks to the measure’s lack of backward reach and workers’ rights under federal law.

But these legal options are limited, damages will be capped, and workers will have an uphill battle proving their claims, attorneys say.

Proposition 22 offers insulation from legal attacks to gig companies, unlike other stricter state laws that put their business models at risk. However, the measure—which essentially created a new worker status ...