California succeeded in rolling back restrictions on independent contractors with the passing of Prop 22.Austen Bannan is a senior policy analyst in employment at Americans for Prosperity.Visit Business Insider's homepage for more storiesOn Election Day, Californians soundly rejected the state's recent efforts to restrict independent contracting, voting overwhelmingly to allow app-based drivers to continue setting their own hours and the freedom to be their own boss.
Having failed to stem the tide of AB 5, Uber and Lyft were able to get themselves added to the list of companies with exemptions through Prop 22. In the bargain, they accepted wage and benefit mandates that perhaps they can afford, but many small businesses and start-ups can't. What it will actually do is sow more confusion, destroy the livelihoods of thousands of independent contractors, and leave many matters unresolved. For instance, labor unions are not only interested in forcing independent contractors to become employees that are easier to unionize, but are also exploring industry-wide bargaining that could be applied to independent contractors, including this new class of hybrid workers.
That's why the last thing the government should do is impose the kind of restrictions found in AB 5 that make it harder for people to supplement their earnings or make a living as an independent worker, as roughly one-in-ten American workers do.President-elect Joe Biden has expressed support for the California restrictions, giving a push for federal legislation momentum. The House passed such legislation last February, though the Senate did not consider it.
ABannan11 AFPhq Gig companies spent $200m on a shoddy industry-written ballot initiative that deprived workers of basic rights and deceived voters in to thinking they were actually helping. Please don’t repeat this terrible mistake!
ABannan11 AFPhq Oof... sounds like a great idea that massive corporations shouldn’t provide healthcare or quality wages to “independent contractors” 🤦🏼♂️
ABannan11 AFPhq follow california’s voters who petitioned and passed prop 22, not california’s legislators and governor who barreled ab5 into law in an attack on independent contractor rights
ABannan11 AFPhq cali, always the bellwether