2020 California Proposition 22

Proposition 22

November 3, 2020

Exempts App-Based Transportation and Delivery Companies from Providing Employee Benefits to Certain Drivers
Results
Choice
Votes %
Yes 9,957,858 58.63%
No 7,027,467 41.37%
Valid votes 16,985,325 95.50%
Invalid or blank votes 799,826 4.50%
Total votes 17,785,151 100.00%
Registered voters/turnout 22,047,448 80.67%

Proposition 22 was a ballot initiative in California that became law after the November 2020 state election, passing with 59% of the vote and granting app-based transportation and delivery companies an exception to Assembly Bill 5 by classifying their drivers as "independent contractors", rather than "employees".[1][2][3][4] The law exempts employers from providing the full suite of mandated employee benefits (which include time-and-a-half for overtime, paid sick time, employer-provided health care, bargaining rights, and unemployment insurance) while instead giving drivers new protections:

  • 120 percent of the local minimum wage for each hour a driver spends driving (with passenger or en route), but not for time spent waiting
  • $0.30/mile for expenses for each mile driven with passenger or en route
  • health insurance stipend for drivers who average more than 15 hours per week driving
  • requiring the companies to pay medical costs and some lost income for drivers hurt while driving or waiting
  • prohibiting workplace discrimination and requiring that companies develop sexual harassment policies, conduct criminal background checks, and mandate safety training for drivers.[5][6][7][8]

The initiative became state law after passage in November 2020, was challenged in California state courts in 2021, and was upheld on appeal in 2023. Proposition 22 awaits a California Supreme Court decision on its constitutionality.

  1. ^ "Proposition 22 | Official Voter Information Guide | California Secretary of State". voterguide.sos.ca.gov. Archived from the original on 2020-10-30.
  2. ^ Cite error: The named reference CalMat_1 was invoked but never defined (see the help page).
  3. ^ Kerr, Dara (5 November 2020). "Proposition 22, backed by Uber and Lyft, passes. Drivers say they'll keep fighting". CNET. Retrieved 5 November 2020.
  4. ^ Siddiqui, Faiz; Tiku, Nitasha (2020-11-17). "Uber and Lyft used sneaky tactics to avoid making drivers employees in California, voters say. Now, they're going national". The Washington Post.
  5. ^ "EXEMPTS APP-BASED TRANSPORTATION AND DELIVERY COMPANIESFROM PROVIDING EMPLOYEE BENEFITS TO CERTAIN DRIVERS.INITIATIVE STATUTE - ANALYSIS OF MEASURE" (PDF). California Legislative Analyst's Office. 2020-07-15. Archived (PDF) from the original on 2020-08-29. Retrieved 2021-01-07.
  6. ^ Cite error: The named reference WaPo_1 was invoked but never defined (see the help page).
  7. ^ Marshall, Arian (31 October 2019). "Uber and Lyft Fight a Law They Say Doesn't Apply to Them - The ride-hail companies are backing a ballot measure to overturn a California law intended to transform gig-economy workers from contractors to employees". Wired. Archived from the original on 2019-11-06. Retrieved 2020-10-14. The companies and their supporters are pitching the initiative as a "compromise" that would create a third employment classification requiring Uber, Lyft, and their ilk to give drivers more perks than the average independent contractor but wouldn't entitle workers to the full benefits of an employee. If it's approved by state voters, the initiative would require the companies to pay their still-independent contractors a minimum wage and vehicle maintenance costs, cover their auto insurance costs, and grant them a health care stipend. It would create a sexual harassment policy for drivers and riders and would require the companies to investigate complaints. It would also create mandatory safety training for any app-based drivers.
  8. ^ Dickey, Megan Rose (2020-08-14). "Human Capital: A timeline of Uber and Lyft's fight against AB 5 and Pinterest's fall from grace". TechCrunch. Archived from the original on 2020-08-17. November 2020: Californians will vote on Prop 22, a ballot measure majorly funded by Uber, Lyft and DoorDash. Prop 22 aims to keep gig workers classified as independent contractors. The measure, if passed, would make drivers and delivery workers for said companies exempt from a new state law that classifies them as W-2 employees. The ballot measure looks to implement an earnings guarantee of at least 120% of minimum wage while on the job, 30 cents per mile for expenses, a healthcare stipend, occupational accident insurance for on-the-job injuries, protection against discrimination and sexual harassment and automobile accident and liability insurance.

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