After Election Day in California, labor groups and coalitions of drivers were devastated. Ride-hailing companies were relieved.
With Prop. 22's passage in California, Lyft, Uber, DoorDash, and other apps that rely on so-called gig workers will continue to treat those workers as independent contractors. (The SF Chronicle put the vote at 58 percent for, 41 percent against.)
If the measure failed, the state's new(ish) employee classification law AB 5 would have turned those contractors into employees with benefits.
So what does this mean for the rest of the country? California is often a bellwether. New York, Massachusetts, and other states considering gig economy legislation could look to its new "hybrid" model, in which companies give workers some limited benefits. Read more...
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