Proposition 22: Exempts App-Based Transportation And Delivery Company From Providing Employee Benefits To Certain Drivers
Proposition 22 classifies app-based drivers as "independent contractors," instead of "employees," and provides independent-contractor drivers other compensation, unless certain criteria are met. There could be a minor increase in state income taxes paid by rideshare and delivery company drivers and investors.
A yes vote 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 means app-based rideshare and delivery companies would have to hire drivers as employees if the courts say 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.
Background
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 at an event Monday 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.