Ride-sharing companies poured more than $200 million into a California proposition that would allow them to continue treating drivers as independent contractors, rather than employees, thus exempting them from state employment laws.
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The businesses came out winners Tuesday night, as Prop 22 garnered more than 58% support on the ballot as of around 6 a.m. ET Wednesday, according to the Associated Press.
The campaign, heavily funded by Uber and Lyft, as well as similar companies like Postmates, DoorDash and Instacart, entitles drivers to 120% of either a local or a statewide minimum wage and a stipend to buy their own health insurance, based on the number of hours they work a week. But it will also only count “work hours” as when a driver is going to, picking up or dropping off a passenger or delivery, not while they are waiting for the next gig.
“Rideshare drivers and workers across California refused to back down even as Uber, Lyft and DoorDash plowed a record $200 million into a deceitful campaign to strip workers of the essential protections they need now more than ever,” Art Pulaski, executive secretary treasurer of the California Labor Federation, told the Los Angeles Times.
“The end of this campaign is only the beginning in the fight to ensure gig workers are provided fair wages, sick pay and care when they’re hurt at work.”
But Prop 22 defenders called it a win for independence.
“With the passage of Prop. 22, app-based rideshare and delivery drivers across the state will be able to maintain their independence, plus have access to historic new benefits, like a minimum earnings guarantee and health care,” Geoff Vetter, a spokesman for the “Yes on 22” campaign, told the Times.
Uber threatened earlier this year that it would pass increasing costs on to passengers if the company was forced to pay its drivers more, which it said would result in a price rise up to 111%.
California Gov. Gavin Newsom had urged both parties to try too find a compromise, but never came down on either side.
Democratic presidential nominee Joe Biden publicly implored citizens to vote against the proposition.
“Gig economy giants are trying to gut the law and exempt their workers,” he tweeted in May. “It’s unacceptable.”