California voters approve ballot measure to throw lifeline to Uber, most expensive in US history

The measure, Proposition 22, was in reaction to a landmark California law, A.B. 5, that classified workers as employees instead of contractors. It asked voters whether to allow app-based drivers to remain as contractors.

The initiative was not meant to affect other types of workers but to allow gig companies to avoid providing their workers with health and other benefits that come with being an employee. In the run-up to the election, it was feared that passage of the measure would prompt companies in other sectors to follow suit and support future ballot measures that would allow them to turn their employees into contract workers.

Over $226 million were spent on Proposition 22 between groups who supported and opposed it, according to the Los Angeles Times.

The lion’s share of this amount, $206 million, came from companies that supported the measure and rely on gig economy drivers, such as Uber and DoorDash. Other backers included Lyft, Instacart, and Postmates.

These companies argued that their workers enjoy their independence as contractors, like choosing when they work. If they were to become employees, that freedom would be lost.

Unions, such as the International Brotherhood of Teamsters and the Service Employees International Union, opposed the measure but spent much less on it, $20 million. These organizations viewed the measure as threatening organized labor because gig workers are not a part of any union.

Democrats, whom unions overwhelmingly support, have been trying to prevent companies from turning employees into contractors before the election.

The Democratic-controlled House last February passed legislation that tightened hiring rules that prevented employers from classifying workers as contractors. Also, Democratic presidential nominee Joe Biden said he would sign their measure into law.