Millions of California voted to pass Proposition 22, classifying app-based drivers as gig workers, not employees.
Backed by Uber, Lyft, and food delivery apps such as Postmates, Prop 22 exempts app-based drivers from Assembly Bill 5, the California law that created a stricter criteria for independent contractors. Now, Uber and Lyft can continue to label drivers as independent contractors and do not have to provide benefits such as sick leave or insurance.
Opposed by labor unions, the proposition passed 58% to 42%. Experts warn it could set an expectation that large companies can circumvent the government when legislation is passed that goes against their interests.
Companies supporting Prop 22 spent more than $200 million on the campaign, according to CalMatters.