California Proposition 22
California Proposition 22, passed in November 2020, allows app-based transportation and delivery companies, like Uber and Lyft, to classify their drivers as independent contractors rather than employees. This means that drivers do not receive certain benefits typically afforded to employees, such as health insurance and unemployment benefits, but they do gain some new protections and benefits, like a minimum earnings guarantee.
The proposition was a response to Assembly Bill 5, which aimed to make it harder for companies to classify workers as independent contractors. Supporters of Proposition 22 argued that it provides flexibility for drivers, while opponents claimed it undermines workers' rights and benefits.