Several huge companies are able to thank Californians after they voted in favor of measures that continues the relationship of drivers as independent contractors instead of employees. This win has been called temporary by some declaring the legal war far from being finished.
Uber, Lyft, DoorDash, Instacart and Postmates found common ground coming together to combine “$200 million” plus dollars to Pass Proposition 22 in California in a rebuke of labor laws in the state namely AB-5. The Assembly bill 5 was concerning to the companies due to it’s “ABC” test that vets whether gig workers are employees who are eligible for certain benefits and labor protections or not. The potential classification as employees threatened to reduce the businesses bottom lines due to pricey incentives and benefits such as minimum wage or sick pay. Proposition 22 allows Uber and Lyft to offer certain protections they are fiscally comfortable with but comes gravely short of what the AB-5 measure sought for the essential workers. Do you think 2020 hazard pay for frontline drivers would’ve been a better way to spend $200 million in the midst of a pandemic?
BY: BEWITTY Staff