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Uber Technologies Inc. (NYSE:UBER), And Lyft Inc. (NASDAQ:LYFT) Drivers To Continue Working As Independent Contractors

Uber Technologies Inc. (NYSE:UBER), Lyft Inc. (NASDAQ:LYFT) drivers, and workers of gig economy companies in California will continue to be treated as independent contractors after voters approved Proposition 22. This is a ballot measure allowing companies not to be treated as employees, which voters reportedly passed by 58%.

Gig economy workers to continue as independent contractors

The ride-sharing companies and DoorDash backed the proposal campaigning against AB5 legislation that wanted drivers and gig economy workers to be considered as employees. The companies had designed the measure to exempt them from a law requiring them to offer employees unemployed insurance, pay health care, and other benefits.

The voting in favor of Proposition 22 is hard to say if it was at the interest of drivers or the voters’ interest. According to the driver advocacy group, Gig Workers Rising, this is a loss for democracy and could open the door for corporations to write their laws.

With the vote, one of the fiercest regulatory battles that Lyft and Uber have faced has been resolved, and this opens the path for other companies to redefine labor laws across the country. State lawmakers and fight pit labor groups against delivery start-ups and ride-hailing companies have spent around $200 million in support of the measure.

Uber CEO lauds Prop 22 victory

The ride-sharing companies had previously said that they would increases prices, and drivers will have less flexibility if they were to abide by AB5 laws. Gig Workers Rising saw this as a tactic meant to swing the vote in their favor. AB5 had proposed that workers working within the regular business of a firm should be classified as employees, but under Prop 22, the drivers of the companies will be exempt from the rule and will operate as independent contractors.

Uber CEO Dara Khosrowshahi thanked drivers for the victor, and in a let night, email said that the future of independent work is secure because of the voice of many drivers. He said the company will avail of benefits promised by Prop 22 soon.

Published by Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. You may contact Brendan via his email ([email protected]) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).



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