California has voted on allowing gig economy workers to work as independent contractors. Polls have closed, and votes are now coming in.
California's 2020 ballot included Prop 22, which would allow app-based drivers and delivery workers to work as independent contractors instead of company employees. State law currently requires rideshare and delivery companies to hire drivers as employees, not independent contractors.
A recent study from the University of California, Santa Cruz shows that over 70% of gig workers work more than 30 hours a week but do not receive most employee benefits. If Prop 22 passes, app-based drivers may see an increase in income taxes and denial of employee benefits for app-based workers would then be codified in law.
According to California's official voter information guide, Proposition 22 read as follows:
Summary
Classifies app-based drivers as "independent contractors," instead of "employees," and provides independent-contractor drivers other compensation, unless certain criteria are met. Fiscal Impact: Minor increase in state income taxes paid by rideshare and delivery company drivers and investors.
What your vote means
A YES vote on this measure means: App-based rideshare and delivery companies could hire drivers as independent contractors. Drivers could decide when, where, and how much to work but would not get standard benefits and protections that businesses must provide employees.
A NO vote on this measure means: App-based rideshare and delivery companies would have to hire drivers as employees if the courts say that a recent state law makes drivers employees. Drivers would have less choice about when, where, and how much to work but would get standard benefits and protections that businesses must provide employees.
Arguments
Yes on 22 PROTECTS app-based drivers' choice to be independent contractors—by 4:1 margin drivers support independence! • SAVES rideshare, delivery services & hundreds of thousands of jobs • PROVIDES drivers new benefits, earnings guarantee • STRENGTHENS public safety • ENDORSED by overwhelming majority of drivers, community, public safety, small business groups •
No on 22 stops billion-dollar app companies like Uber, Lyft, and DoorDash from writing their own exemption to California law and profiting from it. 22 denies their drivers rights and safety protections they deserve: sick leave, healthcare and unemployment. Companies profit; exploited drivers lose rights and protections. Vote NO.
