Despite notable detractors including large swaths of the Bay Area, the latest tallies show Proposition 22 getting approved by about 58 percent of the voters–a decisive victory for Uber, Lyft, and similar gig-economy companies, as the initiative officially allows them to categorize “app-based” rideshare and delivery drivers as independent contractors rather than employees. It’s also a step toward the creation of another employment category, in which some contractors could hold quasi-employee workplace benefits and protections.
The hybrid designation reserved specifically for rideshare and delivery drivers is bound to influence future federal and state government approaches to regulating the growing gig-economy labor market and may even lead to legislation codifying the new worker status. Meanwhile, the initiative could pose consequences for gig-company founders, generally. More California-based startups might look to piggyback on this provision, and it’s expected to take off in other states.
Recent Comments