Earlier this month, a confident Dara Khosrowshahi, chief executive of Uber, told investors that Proposition 22 was only the beginning. The contentious ballot measure, which was voted into law by millions of Californians this month, allows Uber and Lyft to subvert a new state labor law that required them to reclassify drivers as employees. On a November 5 earnings call, Khosrowshahi said that going forward, “You’ll see us more loudly advocating for… laws like Prop 22.”
Proposition 22 passed in California on Tuesday. Uber, Lyft, and other gig economy companies spent more than $200 million on the ballot measure, which will allow them to classify drivers as independent contractors rather than employees.
Here’s what has changed:
Today California votes on Proposition 22, the controversial ballot initiative that seeks to grant companies like Uber and Lyft an exception to a California law that makes their workers employees. Roughly $202 million has been poured into the initiative, with companies resorting to strategies from sending deceptive mailers to printing “Yes 22” on delivery bags.
And there’s a reason that everyone is so amped up about it: Gig economy business models depend on classifying workers as independent contractors, who have no labor protections such as a minimum wage, paid breaks, or the right to unionize — though the initiative would…
The undercurrents of the future. A publication from Medium about technology and people.