Traffic on Highway 50 in Sacramento on June 30, 2022. Photo by Miguel Gutierrez Jr., CalMatters
Uber must pay $40 million to the parents of a woman who was struck and killed after an Uber driver left her on an Orange County freeway in 2023, an arbitrator has ruled.
The arbitrator rejected Uber’s arguments that California’s Proposition 22 — a voter-approved law written by Uber and other gig companies that cemented drivers’ status as independent contractors, not employees — shields it from liability for a driver’s actions.
“Prop. 22 does not immunize Uber from vicarious liability” for the wrongdoing of its drivers, Richard Stone, a retired judge who served as the arbitrator, wrote in his July arbitration award. Vicarious liability is indirect liability for the actions of another, such as in instances where the parties have a legal relationship.
In his earlier ruling in March, Stone wrote that when California voters passed Prop. 22 in 2020, they could not have intended to do away with Uber’s liability for its drivers’ actions. He noted that the language in the ballot proposition urging voters to approve it referred to classifying drivers as independent contractors, meaning they would not get standard benefits and…
