Prop 22: Uber and Lyft win California bid to class drivers as contractors
Uber and Lyft have secured a major victory today after winning a vote in California that allows the ride-hailing apps to continue classing their drivers as contractors rather than employees.
Voters in California yesterday passed Proposition 22, a state ballot measure that will enable companies in the gig economy to bypass labour laws.
Roughly 58 per cent of ballots were cast in favour of the proposition, Associated Press reported.
The result marks a major victory for gig economy firms such as Uber, Lyft and Doordash, which threw their weight behind the campaign.
The Silicon Valley tech giants poured more than $200m (£155m) into the efforts, making it the most expensive ballot measure campaign in state history.
The vote centred on California assembly bill 5, passed in 2019, which extended labour protection laws to workers in the gig economy.
The companies argued that their drivers should instead be classified as contractors and warned the changes threatened their business models.
But campaign groups argued that Prop 22 would strip drivers of proper labour protections and transparency over pay.
The Yes on Prop 22 campaign last night claimed victory in the vote, saying it “represented the best interests and preferences of hundreds of thousands of app-based drivers across the state”.
“With the passage of Prop 22, app-based rideshare and delivery drivers across the state will be able to maintain their independence, plus have access to historic new benefits, like a minimum earnings guarantee and health care,” the group said.
Prop 22 includes some provisions for drivers, including an earnings guarantee, access to subsidised healthcare and greater workplace protections. However, these are not as extensive as the protections guaranteed under assembly bill 5.
In a blog post this morning, the Gig Workers Collective said it was “disappointed” in the outcome, adding that the campaign’s success was “based on lies and fear-mongering”.
“Companies shouldn’t be able to buy elections. But we’re still dedicated to our cause and ready to continue our fight,” it wrote.