Uber, Lyft and other gig companies facing fights over Prop. 22 in California — and in states where they want to replicate it

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A recent California superior court judge ruling that Prop. 22 is unconstitutional and unenforceable may put a wrinkle in the plans of Uber, Lyft, DoorDash and others. Or so their opponents hope.

After Proposition 22 passed in California last year, gig companies vowed to try to expand what they call an independent contractor-plus model everywhere else.

The gig companies, which have said they plan to appeal the California ruling, rely on treating their workers as independent contractors instead of employees and do not pay taxes that contribute toward states’ worker-compensation funds, unemployment insurance and other costs other employers bear.

In Washington state, a Seattle City Council committee on Tuesday discussed a draft proposal to raise gig workers’ pay to minimum wage plus tips, give them protection against app deactivations and more. According to the proposal, Seattle city officials want to ensure gig workers who “struggle to meet their households’ most basic needs” can fully participate in civic life, thus “benefiting the economy overall.

If voters keep getting asked to decide how gig workers should be treated, labor experts are pointing out what’s at stake.

 

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