In the midst of a chaotic election year, California voters have voted to keep drivers for rideshare companies like Uber and Lyft classified as independent contractors. The ballot measure, known as “Prop 22” passed with a 58% vote. Had the measure failed, these workers would have been classified as employees instead. This would have given them more benefits from their employers as well as under state and federal employment laws. This is an important decision for many workers across the state such as rideshare drivers, food delivery drivers, and more.
Proposition 22 was the result of an ongoing legal battle between drivers and rideshare companies which started with the passage of Assembly Bill 5 (AB 5) in 2019. Since then, Uber and Lyft have been the center of several lawsuits as the state tried to determine how to classify these workers. These companies also funneled a significant amount of money into Prop 22, encouraging voters to support it.
California has over 1 million gig economy workers, more than any other state, and that number continues to rise. But California isn’t the only state dealing with this issue. Rideshare and food delivery drivers all over the country are stuck in the middle of this legal battle. Recently, the Department of Labor released a proposed change to the definition of independent contractor status as a result. This is likely to be an area of employment law that sees significant changes over the coming years.
We know employment laws can be confusing for many workers. That’s why the legal team at Davtyan Law Firm focuses exclusively on helping California workers protect their rights in the workplace. If you need employment law help, call us today at (818) 275-5799.