Proposition 22, a historically expensive effort by gig companies to continue classifying their workers as independent contractors, was approved by California voters Tuesday.
The measure was placed on the ballot by a handful of gig companies — namely Lyft, Uber, DoorDash, Instacart and Postmates — after the California Legislature passed AB 5 last year. The new law forces those companies to classify more of their workers as employees rather than contractors, and offer them workers’ compensation, overtime pay and other basic benefits they hadn’t previously had to provide.
The ballot initiative and the fight to get it passed was unprecedented for numerous reasons, from the amount of money behind it to the use of apps in the campaign strategy.
Proposition 22 will provide an exemption from AB 5 for any company that provides transportation or delivery services through an app. It would enshrine into law a kind of third employment category: the contract gig worker, one with fewer benefits than a traditional employee. This has for years been a goal of gig companies, who have pursued it at the federal level, and have already had success getting legislation on the books in a number of states.
The statute created by Proposition 22 would be very hard to change at the local and state level. It prevents local governments from passing laws that require companies to provide additional benefits and protections for gig workers. It is also among the hardest statutes for the Legislature to alter because of a provision requiring a seven-eighths supermajority.
