The 22 law in California is also known as California "Prop 22", which is a voter approved law from the year 2020, which classifies app based like Lyft and Uber drivers as independent contractors and not employees, while also requiring companies to provide some benefits, such as healthcare subsidies and minimum earnings guarantees.
And also it limits governments from regulating these companies further.
The California "Prop 22" law was also challenged in court, but it was also upheld by the California Supreme Court, which solidified it's place in the gig economy, and allows flexibility but also restricts traditional employee rights like benefits and full minimum wage.
Under the California "Prop 22" law drivers of app based companies like Uber or Lyft are classified as independent contractors and drivers of these companies remain independent contractors, which means that they don't get any traditional employee benefits like workers comp or unemployment.
Companies under the California "Prop 22" law also must ensure that their drivers earn at least 120% of the local minimum wage 34 cents per mile or a similar rate during engaged time, with top up payments if they happen to fall short.
Drivers also averaging 15 or more hours a week get health insurance subsidies, and drivers averaging 25 or more hours get more.
The California "Prop 22" law also mandates anti-discrimination policies, training programs, and zero tolerance DUI polices.
It also prevents cities and counties from enacting their own rules on rideshare/delivery companies.
And there's also legislative hurdles as Amending Prop 22 law in California requires a super majority vote of 7/8 in the legislature, which makes it hard to change.
Prop 22 matters as it created a unique, third category for gig workers in California, balancing of flexibility for drivers with some financial support, while also limiting regulatory power over these platforms.