Setareh Law
March 11, 2026
California’s roads are busier than ever with rideshare drivers, food delivery couriers, and app-dispatched workers operating vehicles for platforms like Uber, Lyft, DoorDash, and Instacart. When one of these drivers causes an accident, injured victims often discover that figuring out who is legally responsible is far more complicated than a standard car crash, and the answer depends heavily on how that worker is classified under California law.
The passage of AB 5 in 2019, followed by Proposition 22 in 2020 and a landmark California Supreme Court ruling in 2024, has reshaped what gig worker accident liability looks like in this state. Setareh Law has recovered over $250 million for injured Californians and brings 60+ years of combined experience to complex personal injury cases. Whether you were hit by a rideshare driver, a delivery worker, or any other gig economy driver, our attorneys understand the legal framework that governs who pays for your injuries.
What AB 5 Changed and Why It Matters for Accident Victims
California Assembly Bill 5, which took effect on January 1, 2020, codified the “ABC test” as the standard for determining whether a worker is an employee or an independent contractor. As the California Franchise Tax Board explains, a worker may only be classified as an independent contractor if the hiring entity can prove all three conditions: the worker is free from the company’s control, the worker performs work outside the company’s usual course of business, and the worker is customarily engaged in an independently established trade or occupation. If a company cannot satisfy all three prongs, the worker must be classified as an employee, with all the employer liability protections that classification carries.
Why Employee Status Matters in an Accident Claim
The distinction between employee and independent contractor is not just a labor law issue. In personal injury law, it determines whether a company can be held vicariously liable for its driver’s negligence. When a worker is classified as an employee, their employer can be held responsible for accidents the worker causes while performing work duties under the legal doctrine of respondeat superior. If the driver is an independent contractor, the platform or company is generally shielded from that vicarious liability, leaving the injured victim to pursue only the individual driver, who may have limited insurance or assets.
How Proposition 22 Complicated the Picture
Just months after AB 5 took effect, California voters approved Proposition 22 in November 2020 with 59% of the vote. Passed after rideshare and delivery companies poured over $200 million into the campaign, Proposition 22 carved out a specific exemption for app-based transportation and delivery drivers, allowing platforms like Uber, Lyft, and DoorDash to continue classifying those workers as independent contractors under a modified framework rather than the full ABC test established by AB 5.
What the 2024 Supreme Court Decision Settled
Proposition 22 faced immediate legal challenges, with opponents arguing it was unconstitutional. On July 25, 2024, the California Supreme Court unanimously upheld Proposition 22, affirming that app-based drivers can remain classified as independent contractors as long as certain conditions are met. This ruling has significant implications for accident victims. Because rideshare and delivery drivers operating under Proposition 22 are classified as independent contractors, the platforms retain their general shield from vicarious liability, meaning injured victims typically cannot sue Uber or Lyft directly for the driver’s negligence in the same way they could sue an employer for an employee’s actions.
What Coverage Is Available After a Gig Worker Accident
Despite Proposition 22’s protections for platforms, injured victims are not without recourse. Proposition 22 requires app-based companies to provide occupational accident insurance that covers medical costs and some lost income for drivers injured while working. More importantly for third-party victims, California law and the platforms’ own policies require commercial liability insurance coverage when a driver is actively working within the app. Understanding which insurance phase applies at the moment of your crash is critical to identifying all available coverage.
The coverage framework for rideshare and delivery accidents typically works as follows, with each phase carrying different insurance implications:
- Driver offline: only the driver’s personal auto insurance applies, with no platform coverage
- App on, waiting for a request: the platform provides limited contingent liability coverage, often $50,000 per person in bodily injury
- Ride or delivery accepted, passenger or order in transit: the platform’s commercial policy, which can reach $1 million in liability coverage, is active
If any of these layers fall short of covering your full damages, your own uninsured motorist coverage may serve as a critical backup source of compensation.
Other Gig Workers Still Covered Under AB 5
Not every gig worker is shielded by Proposition 22. Workers in industries outside the app-based rideshare and delivery space, including many truck and commercial delivery drivers, may still be governed by AB 5’s ABC test. If such a worker is properly classified as an employee under that test and causes an accident while performing work duties, their employer can be held vicariously liable for the damages. Cases involving wrongful death or catastrophic injuries caused by gig workers in non-exempt industries may therefore provide a much broader range of defendants and deeper pockets than rideshare-specific cases.
Contact Setareh Law After a Gig Worker Accident
The intersection of AB 5, Proposition 22, and California personal injury law creates one of the most legally complex landscapes accident victims can face. Determining who is liable, what insurance applies, and how to maximize your recovery requires attorneys who understand both the statutory framework and the insurance structures unique to the gig economy. Setareh Law takes all cases on a contingency fee basis, serves clients across eight California office locations, offers bilingual services, and has earned over 400 five-star Google reviews from clients who trusted us with their most serious cases.
To learn more about our experience and approach, visit our firm profile, or contact us today for a free consultation. Setareh Law is ready to untangle the liability questions in your case and fight to recover the full compensation you deserve.
