California Supreme Court rejects challenge to Proposition 22: Castellanos, et al. v. State of California, et al.

In Castellanos, et al. v. State of California, et al.,           Cal.5th           (Jul. 29, 2024), the California Supreme Court rejected a challenge to Proposition 22, holding that Bus. & Prof. Code § 7451 does not conflict with the legislature’s broad power to regulate workers’ compensation.

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Plaintiffs challenged several provisions of Proposition 22, including § 7451, arguing that they were invalid and not severable. The trial court agreed, but the Court of Appeal reversed. 

On review, limiting the issue to the constitutionality of § 7451, the California Supreme Court affirmed. Relying on Independent Energy Producers Association v. McPherson (2006) 38 Cal.4th 1020 and Mathews v. Workmen’s Compensation Appeals Board (1972) 6 Cal.3d 719, it held that the Legislature’s plenary power over workers’ compensation is not exclusive and that the people can also legislate on such matters through the initiative process. The court declined to rule on whether § 7465, together with article II, § 10(c), conflict with article XIV, § 4, reserving that issue for a case directly challenging legislation providing workers’ compensation to app-based drivers. It rejected Plaintiffs’ argument that Assembly Bill No. 1766 presented such a challenge.

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