California voters passed Proposition 22 on Election Day. The measure was heavily backed by Uber, Lyft and similar gig-based work platform corporations, which invested $205 million to swamp the state in advertising and misinformation.
The new law denies Uber and Lyft drivers employee status along with a minimum wage, adequate health benefits, sick leave, workers compensation and more. For their $205 million investment, the companies got to call their drivers independent contractors overturning AB 5, a California law that was passed in 2019 to protect the drivers with employee status.
The gig employers argued in their campaign for Proposition 22 that the bill would benefit its drivers. When was the last time you heard of companies spending $205 million in a legislative battle to improve the lives of their workforce? Unfortunately, the opposition had only a small percentage of the resources to combat the corporate advertising onslaught.
Now Uber, Lyft, InstaCart, DoorDash and similar outfits look to attack worker rights in other states and ultimately at the federal level by having their workers everywhere classified as independent contractors.
The need to prevent the expansion of this form of employee abuse is evident. Especially so, because the COVID-19 pandemic has disrupted the workplace for millions of Americans.
If people working from home and others on reduced work schedules can be reclassified as contractors, it won’t just be Uber, Lyft and other gig employers who rush to take advantage of Proposition 22-like legislation. At every level of the economy, working people and their livelihoods will be threatened.
If people working from home and others on reduced work schedules can be reclassified as contractors, it won’t just be Uber, Lyft and other gig employers who rush to take advantage of Proposition 22-like legislation. At every level of the economy, working people and their livelihoods will be threatened.
Since passage of Proposition 22, the stock market has rewarded Uber and Lyft with double-digit jumps in value. Other employers cannot fail to take note.
Before the next attack on worker’s rights begins, a concerted effort must be made by Labor and its allies to plan and thwart Proposition 22 lookalikes across the country. ■
