Supreme Court upholds Prop. 22; NFIB’s positions on November ballot propositions complete.

Welcome to the July 29-August 2 edition of the NFIB California Main Street Minute from your small-business-advocacy team in Sacramento.

NFIB California Weighs in on Final Ballot Proposition

• With last Monday’s (July 22) news release announcing NFIB’s opposition to Proposition 33, the rent control initiative, we have completed comment on the measures of most concern to small business.

• There will be 10 measures on the November General Election ballot. Click here for the secretary of state’s brief description of them all. The following is NFIB California’s position on them. As a reminder why NFIB refrains from endorsing or opposing most of them, click here.

• As mentioned in previous Main Street Minutes, two other measures headed for the ballot were either removed by a State Supreme Court decision or by a deal cut by the principals. The Taxpayer Protection Act, which NFIB was an early and vociferous supporter of, was given the heave-ho by the state Supreme Court, and the ballot measure to de-fang the Private Attorneys General Act (PAGA) was removed by proponents after a deal was cut with labor and lawyers to file down some of the law’s sharper incisors.

• Line of the week. Now that the Olympics are upon us, in a free webinar on the ballot initiatives, July 23, put on by Swing Strategies, President Tom Ross likened the Supreme Court’s decision on the Taxpayer Protection Act to the knee-capping of Nancy Kerrigan by supporters of Tonya Harding prior to a figure skating event.

• Food for thought: “Since 1912, only 7% of initiatives that were filed eventually passed.” Source: Swing Strategies.

Reminder: Speaking of PAGA

• Elizabeth Milito, executive director of NFIB’s Small Business Legal Center, and NFIB California State Director John Kabateck will discuss how changes in the Private Attorneys General Act (PAGA) will affect – and benefit – you and other small business owners. Thursday, August 8, 11 a.m. An invitation has been sent to all NFIB members in the state.

• If you have not received your invitation, click here. For any questions, send an email to NFIB Grassroots Manager Taylor Criddle, taylor.criddle@nfib.org.

Next Up

• NFIB’s endorsements for the California State Legislature.

Supreme Court Rules on Prop. 22

• Last Thursday (July 25), the Supreme Court of California, by unanimous vote, answered the question put before it in the case of Castellanos v. State of California, “Does Business and Professions Code section 7451, which was enacted by Proposition 22 (the ‘Protect AppBased Drivers and Services Act’), conflict with article XIV, section 4 of the California Constitution and therefore require that Proposition 22, by its own terms, be deemed invalid in its entirety?”

• It doesn’t conflict. In a victory for independent contracting, Justice Goodwin Liu, reports the Los Angeles Times in its story (California Supreme Court upholds Prop. 22, ending legal saga over status of gig drivers) “appeared unpersuaded, saying at the hearing that the law doesn’t necessarily prevent workers from receiving workers’ compensation and does not block legislators from deciding that independent contractors are eligible for workers’ compensation … The court concluded the state Legislature does not have sole authority to govern workers’ compensation since the state Constitution does not bar voters from passing initiatives on the matter.”

• According to the Times, “The decision has sweeping implications for the 1 million-plus people who drive for app-based companies in California.”

• Although we are still miffed at this same court’s decision to toss the Taxpayer Protection Act off the November ballot, NFIB California is happy with the outcome of the Castellanos decision. NFIB did not back Prop. 22, but wished the measure success. Instead, we directed our energies at stopping Assembly Bill 5 from passing, because of the harm it did to all independent contractors, not just those in one industry.

Small Business Mentioned in Gubernatorial Announcement

• Former Los Angeles Mayor and Assembly Speaker Antonio Villaraigosa threw his hat in the 2026 gubernatorial ring last Tuesday, July 23.

• “In a campaign video he released on Tuesday, Villaraigosa touted his work as mayor and Assembly speaker,” reported The Sacramento Bee. “He plans to focus on the state budget, education and lowering costs for small businesses and middle class families.”

• Good bit of political rhetoric, “lowering costs for small businesses.” If he becomes governor and shows he means it, NFIB California will be the first and loudest to applaud him. But the candidate field on the Democratic side is getting more crowded than a Volkswagen Beetle full of college kids seeing how many of them can fit in.

• Candidates already announced or considering a bid include:

— Lt. Gov. Eleni Kounalakis

— Attorney General Rob Bonta

— State Controller Betty Yee

— Superintendent of Public Instruction Tony Thurmond

— U.S. Dept of Health and Human Services Secretary Xavier Becerra

— Former State Senate President and State Assembly Speaker Toni Atkins

• Kounalakis has the early lead on money, having banked $9 million so far. The only Republican whose name has been bandied about is Riverside County Sheriff Chad Bianco.

The Legislature

• The Legislature returns from its summer recess next Monday, August 5.

Calendar

• August 5, Legislature returns from summer recess
• August 8, NFIB Webinar on PAGA changes (see above)
• August 31 deadline for bills to have passed Legislature and sent to governor
• September 30 deadline for governor to sign bills into law
• October 7 County clerks begin mailing ballots to all Californians
• October 21 Last day to register to vote
• November 5, General Election Day

National

From Elizabeth Milito, Executive Director of NFIB’s Small Business Legal Center

• It was a great month for small businesses!

• The U.S. Supreme Court wrapped up its 2023-2024 term by issuing three decisions in favor of small business interests. We also filed two amicus briefs, including one that defends the ability of business owners to use independent contractors. Our total case count for 2024 now stands at 28.

• Our July webinar served as a mid-year status report for small business issues – Small Business Mid-Year Checkup – Trends and Tips for 2024. We also published two blog posts.

• You can read more in the July edition of The Docket, the Legal Center’s monthly newsletter.

Next Main Street Minute August 5.