Proposition 22 and evolving law governing California contractors
With voter approval of Proposition 22, ridesharing companies succeeded in creating a new kind of independent contractor profession under California law consisting of app-based drivers. The law gives drivers some of the rights of employees, such as minimum hourly pay and the right to reimbursement of some expenses.
But app-based drivers represent a tiny fraction of the independent contractor workforce. Changes with far greater consequences than Proposition 22 to the law governing independent contractors may be coming.
The overarching goal of the ridesharing companies in sponsoring Proposition 22 — and spending over $200 million to secure its passage — was to replace California’s ABC test for classifying a worker as an independent contractor with a more limited, less demanding set of criteria applicable only to app-based ridesharing and delivery companies.
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