This year, Californians will vote on a ballot measure to allow companies like Uber and DoorDash to classify drivers as independent contractors instead of employees, a vote with major implications for gig economy workers across the country.
The measure would partially repeal a new California law that classifies such drivers as employees instead of contractors, giving them access to benefits like company-sponsored healthcare and paid time off.
Companies such as DoorDash, Lyft, Uber, Instacart, and Postmates support the ballot measure, Proposition 22, which would allow app-based drivers to work as contractors. The measure would not affect other types of workers.
These companies have contributed over $180 million to the ballot’s campaign. They also argue that its failure at the polls would threaten to end contractor work even though many people favor being freelancers because they like to control their work schedules.
The proposition contains a test for classifying drivers as employees. If a company sets the driver’s hours, restricts them from working for other companies, or requires them to accept certain deliveries or ride-shares, they would be considered employees.
Proposition 22 would also limit drivers from working more than 12 hours within a 24 hour period and require ride-share companies to provide accident insurance that covers at least $1 million in lost income and medical expenses if a driver becomes injured while on the job.
Unions, such as the International Brotherhood of Teamsters and the Service Employees International Union, oppose Proposition 22. Roughly $10 million has been raised for the campaign opposing the measure.
California’s law and Proposition 22 are important test cases for the country as a whole.
House Democrats have already passed similar legislation to California Assembly Bill 5. The “Protecting the Right to Organize Act,” or PRO Act, amends the National Labor Relations Act by tightening hiring rules that prevent employers from classifying workers as independent contractors.
The Republican-controlled Senate is not expected to vote on the legislation.
However, if Democrats take control of the White House and Congress after the election, it is likely that the bill would receive a vote in both chambers, as former vice president Joe Biden, the Democratic presidential nominee, has already said he would sign the measure into law if he wins in November.
“Rebuilding the middle class and ensuring that this time everyone comes along starts with one word: unions. That’s why I look forward to signing the #PROAct as President,” Biden tweeted a few days after House Democrats approved the bill in February.
Recent polling on Proposition 22 shows that it could pass by a slim margin, 39% support versus 36% opposed, according to a recent Berkeley IGS Poll.
