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Happening Today: California Voters to Decide Proposition 22

 

At long last, today is finally Election Day across the country.  While the Presidential election and Senate races will likely dominate news coverage throughout the day and into tomorrow (or beyond, depending how close vote tabulations are), there are several down ballot measures worth watching.  One ballot initiative in particular to watch is Proposition 22 pending in California.  This ballot measure would create a permanent independent contractor status for gig workers in the state, exempting them from Assembly Bill 5.  (As a reminder, Assembly Bill 5 required gig workers to be classified as employees.  Gig companies such as Uber, Lyft, DoorDash, and others have been quick to mount on offense to Assembly Bill 5...thus we have Proposition 22 on the ballot this year.)

For some specifics, while Proposition 22 would exempt gig workers from Assembly Bill 5 and would classify them as independent contractors, these workers would be guaranteed a minimum wage for the time they are “active” on the gig company’s platform.  (For instance, “active” would included time spent driving a passenger or fulfilling a shopping order.  However, time spent logging into the company’s platform and waiting for a job request would not count.)  These workers would get paid 120% of the local minimum wage rate plus $.30/mile driven.

In addition, gig workers that work at least 15 hours a week would also be entitled to a stipend toward the purchase of health insurance.

While a prediction on the outcome of Proposition 22 is tough to say, it is worth noting what has been done to push for (and against) its passage.  Proponents of Proposition 22 have spent approximately $200 million  on the ballot measure while opponents have only amassed about $16 million.  The amount of money for and against the ballot measure does not exactly give us a crystal ball look at the outcome, but as readers can see, there has been a great deal of time and money spent to get voters to approve Proposition 22.  Should Proposition 22 manage to garner enough votes to be approved, there is widespread speculation that other companies in the service industry might try and pass a similar ballot initiative.  Let’s see what happens.


For additional information:  https://www.cbsnews.com/news/california-proposition-22-gig-workers-ballot-initiative/

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