“California has rejected a major gig economy reform, leaving workers without employee protections”, 04 November 2020

Proposition 22 created to decide the future of the California gig economy, has passed.

The proposition concerned whether app-based drivers for companies like Uber and Lyft are employees or independent contractors…

… [I]t is a serious loss for gig workers hoping for stronger workplace protections as well as labor advocates…

… [A] California law passed last year called AB 5 … created more stringent standards for classifying someone as an independent contractor, expanding on a previous decision from the state’s Supreme Court.

… [T]hat didn’t stop companies like Uber and Lyft from continuing to treat their drivers as independent contractors … after an appeals court recently affirmed that these companies must start treating their drivers as employees, Proposition 22 became one of the final opportunities for these companies to keep their drivers from being considered employees and preserve their longtime business model.

… [L]abor organizations … said ride-hailing drivers deserve the protections of employee classification, like sick leave and health care… They argued that Proposition 22 will potentially leave drivers with pay below the minimum wage, prevent them from accessing overtime, and provide insufficient health care protections.

Importantly, the Yes on Prop 22 campaign was heavily funded by these companies; about $200 million overall had been spent in support of the initiative as of mid-October…