From Where We Are

Ride-hail drivers will remain contractors, not employees under Prop. 22

Proposition 22, that passed yesterday, is the most expensive ballot measure in California’s history.

Uber, Lyft and other app-based ride-hailing and delivery services prevailed at the ballot box in their expensive gamble to keep drivers classified as independent contractors. Proposition 22 pitted the powerhouses of the so-called gig economy, including DoorDash, Postmates and Instacart, against labor unions. The measure creates an exemption to a state law that would have made drivers eligible for benefits that come with being company employees. (AP Photo/Damian Dovarganes, File)

California voters approved Proposition 22 yesterday. This means drivers for ride-share and delivery apps will continue to be classified as independent contractors, rather than employees. The companies themselves are excited about the outcome; but as Caroline Kucera reports, some drivers have mixed feelings.

--------------------------------

Proposition 22 is the most expensive ballot measure in California’s history. 184 million dollars was spent. Gig companies such as Uber, Lyft, Doordash and Instacart designed the measure to exempt the companies from state labor law. And they claimed that drivers would have more freedom and flexibility along with new benefits.

Uber driver Jim Pyatt is happy about the outcome.

“For me, it’s really simple, it’s the independence of being able to work when I want and where I want as I have grandchildren and elderly parents and so I can care for them. And this gives me the ability to juggle all of these things and get some work and make some extra income. And that’s why I like the flexibility of it.”

Under prop 22, independent contractors are not eligible for current employment benefits such as minimum wage, unemployment insurance, health care, overtime pay, sick leave and the right to form a union.

Donovan Grant has been an Uber driver for six years and a Lyft driver for five. He is upset that the ballot measure passed.

“They’ve been fighting it because it would cost them a little bit more to take care of us. They’re using that as an excuse. As a campaign to scare the public and think that drivers are going to lose the opportunity for job. It’s not true. State of California has ensured that we should be treated as decent employees, make a decent wage, and the flexibility is not an issue.”

Steve Smith, communications director for the California Labor Federation is concerned about drivers' safety.

“Uber and Lyft would have absolutely no liability to riders. And that means if a rider is injured or killed, assaulted in an Uber or Lyft, then that rider would have no ability to go after Uber, Lyft for damages.”

Besides prop 22, California also passed Prop 17 which allows parolees to vote and Prop 24 which expands the state’s consumer data privacy laws.

A few propositions failed including prop 25 which would have abolished California’s cash bail system and prop 16 which would have allowed affirmative action policies.

For Annenberg Media, I’m Caroline Kucera.