California Proposition 22 (Prop 22) is a state law that lets companies classify rideshare and delivery drivers as independent contractors while providing them with certain benefits if they meet work-hours criteria.
Prop 22 guarantees gig workers new, limited healthcare subsidies and accident insurance, some reimbursement to account for gas and other vehicle costs, and a “minimum earnings guarantee†equal to 120% of the minimum wage applied to the drivers' “engaged†time (defined as the time between accepting a ride request andNov 4, 2020
The aftermath of Prop 22 made clear that its sole objective was to insulate app-based companies' business model from any legal or worker challenge, so the companies could once and for all pass costs onto workers and consumers in a last-ditch attempt at profitability.Sep 16, 2021
If Prop. 22 fails, gig companies will be on the hook to give drivers a slew of benefits, including unemployment insurance, paid sick leave and minimum wage for all hours worked.Oct 16, 2020
Once Proposition 22 goes into effect in mid-December, the law will require that companies provide an hourly wage for time spent on rides equal to 120% of either the local or a statewide minimum wage. Also ruled out is the threat by the California ride-hailing companies to cease operations in their home state.Nov 4, 2020
SAN FRANCISCO — For Uber and Lyft this election, “yes†meant “no†to labor rights. The two Silicon Valley companies won passage of a gig-worker law known as Prop 22 that exempted them from classifying their millions of California drivers as full employees, denying them a minimum wage and other critical benefits.Nov 17, 2020
A NO vote on Prop 22 would give drivers paid sick leave and give drivers the flexibility of not being forced to work during a global pandemic in order to put food on the table. Gig companies have spent a combined $110 million+ on Prop 22.
Uber wouldn't make that mistake again. “They realized it was a potentially existential crisis for them, they spent $200 million to fix it, and they did.â€Nov 21, 2020
Prop 22 does provide some employee-like protections to gig economy drivers who will be classified as independent contractors, such as a minimum wage guarantee., overtime pay, access to workers' compensation, union rights, family and sick leave, or employer related benefits.Nov 25, 2020
Lyft, Uber, DoorDash, Instacart, and Postmates contributed over $205 million into campaigns supporting Prop 22, making it the most expensive ballot measure in California's history.
The measure approved by California voters in November allows gig companies like Uber to continue treating drivers as contractors, with some added benefits such as healthcare subsidies.Feb 12, 2021
Prop. 22 will take effect following the certification of California's election results, which is expected on December 11, 2020. While Prop. 22 provides clarity for delivery and rideshare drivers, its scope is limited and provides little guidance for other employers.Dec 4, 2020
Meredith Whittaker, a professor at New York University, and Veena Dubal, a law professor at University of California, Hastings, wrote, "To get Prop 22 passed, gig companies — which have yet to turn a profit — spent a historic $205 million on their campaign, effectively creating a political template for future anti-
