Gig Firms Expected to Push California Law to Other States, Business Insurance, ft. Katherine Catlos

Katherine S. Catlos, partner at Kaufman Dolowich & Voluck LLP in San Francisco, and Chief Diversity & Inclusion Officer, was quoted in a Business Insurance article by Judy Greenwald on November 24, 2020.

App-based rideshare and delivery companies will likely seek to build on a recent California ballot victory to limit potential employment-related liabilities they may face in other states, employment law experts say.

Proposition 22, a ballot initiative that was passed by California voters earlier this month following heavy promotion by companies such as Uber Technologies Inc., Lyft Inc. and DoorDash Inc., addresses the realities of today’s workforce and will benefit employers and workers, its proponents say.

Opponents, however, have criticized the ballot initiative as being a loss for workers.

The proposition carves out app-based drivers from benefits employers are required to provide, including sick leave, workers compensation coverage and unemployment.

The gig economy had created “a very significant shift in employment law by creating this new type of worker,” said Katherine S. Catlos, a partner with Kaufman, Dolowich & Voluck LLP in San Francisco.

Ms. Catlos said Prop 22 is positive for workers because they will receive certain health benefits.

“I definitely see this being used in other states and quite possibly the federal level,” although it may face some court battles, she said.

Read more at the full article.