Voting yes on Prop 22 means letting Uber, Lyft and other rideshare and delivery companies classify drivers as independent contractors, not employees.
This would exempt the companies from AB5, the landmark law approved by California legislators in 2019 that required businesses to extend protections such as minimum wage and health benefits to more freelancers and independent contractors. If Prop 22 passes, gig-economy companies would have to provide alternative benefits that include minimum compensation and health care subsidies based on driving time, car insurance, safety training and sexual harassment policies.
Voting no on Prop 22 means the companies would not be exempt from AB5. Uber and Lyft, both based in San Francisco, have threatened to leave California if Prop 22 fails.
Supporters: Uber, Lyft and Doordash sponsored the bill. They argue that drivers are not a core part of their businesses since they are technology companies, not transportation companies. With help from Postmates and Instacart, the companies have spent more than $180 million to promote the measure.
Critics: Labor advocates and unions have denounced the proposition. The International Brotherhood of Teamsters said, “Prop 22 exempts these multi-billion-dollar gig corporations from contributing to safety net programs we all need like Social Security, Medicare and Unemployment Insurance.” State Attorney General Xavier Becerra has also sued Uber and Lyft for misclassifying their drivers under AB5.
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