Proposition 22 would permit corporations like Uber and Lyft to proceed to categorise their drivers as unbiased contractors. | Al Seib/Los Angeles Instances by way of Getty Pictures
Californians will vote on whether or not ride-hailing drivers needs to be unbiased contractors or full-time staff.
The way forward for the so-called gig financial system is within the fingers of California voters deciding on Proposition 22, the most recent growth in an ongoing struggle over whether or not app-based drivers needs to be thought-about unbiased contractors or staff.
The proposition, which has the help of a dear marketing campaign funded by corporations like Uber and Lyft, would permit these corporations to proceed to categorise their drivers as unbiased contractors, whereas offering some restricted advantages and protections. Classifying drivers on this method has stored prices decrease for these companies, and been central to their enterprise mannequin.
However critics of those companies — together with a motion made up of drivers who need the appropriate to unionize — argue that the work these gig staff do makes them staff, and that they deserve protections given to staff, like additional time pay and paid depart.
Proposition 22 isn’t the primary time California has thought-about the employee-independent contractor query. Final 12 months, the state accepted a regulation known as AB 5, which created new requirements for classifying individuals as unbiased contractors that constructed on a earlier ruling from the state’s Supreme Courtroom. However corporations like Uber and Lyft haven’t complied, inviting a court docket case from state officers. The businesses hoped to win that case, in order that their supply and ride-hailing apps would have the ability to preserve enterprise as common.
However they’ve had no such luck. In a current resolution, a California appeals court docket reaffirmed that sure, ride-hailing drivers should be thought-about staff. That signifies that Proposition 22 might probably be these corporations’ final probability to guard their companies as they know them. But when Proposition 22 succeeds, it might additionally spell defeat for ride-hailing drivers who’re demanding higher protections and pay.
California Proposition 22
A sure vote would imply ride-hailing corporations can take into account drivers unbiased contractors who usually are not entitled to the identical advantages as staff.
A no vote would imply ride-hailing drivers needs to be thought-about staff, and given further advantages and protections.