Proposition 22, an historically expensive effort by gig companies to continue classifying their workers as independent contractors, was passed by California voters Tuesday.
The measure was placed on the ballot after the California Legislature passed Assembly Bill 5 last year. That law forces companies to classify more of their workers as employees rather than independent contractors, and offer them workers’ compensation, overtime pay and other basic benefits they hadn’t previously had to provide.
Proposition 22, which was sponsored mainly by a handful of companies that rely on part-time workers — namely Lyft, Uber, DoorDash, Instacart and Postmates, sought an exemption from AB 5 for any company that provides transportation or delivery services through an app.
It also enshrines into law a kind of third employment category: the contract gig worker, who would receive fewer benefits than a traditional employee.
This ballot initiative and the fight to get it passed was unprecedented for numerous reasons, not least of which was the more than $200 million spent by several app-based transportation companies.
