Proposition 22 has passed, the Associated Press has reported. App-based drivers will be classified as “independent contractors,” instead of “employees.”
App-based rideshare and delivery companies will be able to hire drivers as independent contractors. Drivers can decide when, where, and how much to work but would not get standard benefits and protections that businesses must provide employees.
If passed, the measure would allow ride-hailing companies like Uber and Lyft to continue classifying drivers as independent contractors, not employees.
Its opponents said that Prop 22 would only worsen racial and income inequality in California by enabling companies like Uber and Lyft to exploit their predominantly non-white workforce. Companies would not be required to pay drivers minimum wage, sick leave, unemployment insurance, or workers’ compensation insurance.
If Prop 22 were passed, it would require a seven-eighths majority vote by the state Legislature to amend.
Uber, Lyft, DoorDash, and Instacart have collectively spent $185 million on advertising calling for Prop 22 to be passed.
Mothers Against Drunk Driving announcing its support for the proposition, saying ride-hailing services have helped to reduce drunk and drugged driving around the state.