Uber/Lyft/Others Take Impact of AB5 to the Ballot Box


You may have noticed a recent onslaught of television and radio ads regarding Proposition 22, which will appear on California ballots in the upcoming November election.  Proposition 22’s stated goal is to exempt ride-sharing and food-delivery companies from the Assembly Bill 5 gig worker law that was passed in September 2019, meaning Uber and Lyft could continue classifying — and paying — drivers as contractors, not employees. Uber and Lyft have built their business models around doing so, reserving full-time employee status for corporate roles to keep costs low. Uber, Lyft, Doordash, Postmates, and Instacart have poured a total of $110 million into support for the measure.  The businesses supporting this proposition have threatened to cease operations in California if this proposition does not pass.

Under Proposition 22, drivers would not be considered full- or part-time employees, with the attendant rights which is one of the factors driving critics to oppose the measure. Drivers and labor advocates have long argued that Uber and Lyft’s businesses are harmful to workers because they pay them lower wages and provide fewer benefits, like unemployment and health insurance.

The full text of Proposition 22 can be viewed here:  https://www.sos.ca.gov/elections/ballot-measures/qualified-ballot-measures

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