Gig economy giants shattered state spending records as they spent more than $200 million to avoid having to reclassify the workers who ferry passengers and deliver food.
Uber, Lyft, DoorDash, Postmates and Instacart have treated those workers as independent contractors, but a 2019 law growing out of a California Supreme Court decision — Assembly Bill 5 — likely requires the companies to classify those workers as employees instead. California Attorney General Xavier Becerra and big-city attorneys have sued Uber and Lyft to force them to treat their drivers as employees under AB 5. That increased the stakes for Prop 22, with courts indicating that the state could prevail on the merits.
Arguing that the mandate would upend their businesses, the gig companies have spent what it takes to exempt themselves via Prop 22. While the initiative would block gig workers from claiming employee benefits like minimum wage and paid sick time, it would provide an earnings minimum and some health coverage.The Yes on 22 campaign declared just before 10:45 p.m. that it had won Tuesday.