There is an ongoing clash between California government and ride-hailing service providers Uber Technologies Inc & Lyft Inc. after the judge of an appeals court issued an order which forced these two companies to treat their respective drivers as employees. Now a recent update is coming to this clash, the outcome will be decided by the voters, rather than the courts.
These voters will look for several ballot measures on the general election on 3rd November, including the fate of Proposition 22. Backed by Uber, Lyft, Instacart, and other companies that are active in the “gig economy,” the measure would determine whether workers are classified as independent contractors or full-time employees.
Proposition 22 may overrule California’s Assembly Bill 5. Under Bill 5 it is being mandated for companies like Uber and Lyft that are active in the “gig economy,” to treat their ride drivers and service providers as employees and provide them with minimum benefits including minimum wage, sick pay, and unemployment insurance.
What does a “yes” vote mean?
If the voters will give a “yes” vote on Proposition 22 then the gig companies are allowed to classify their workers as independent contractors, but with a mandate that companies provide them with minimum benefits including minimum wage and access to health care.
What does a “no” vote mean?
If the voters will give a “no” vote on Proposition 22 then the gig companies will have to classify their workers as full-time employees and have to provide them with minimum benefits including minimum wage, sick pay, and unemployment insurance in the state of California.
Earlier the implementation of this new law was made mandatory for these gig companies by 21 August, but the court granted an emergency stay that delayed the implementation until the case between both the parties is resolved.
Both the ride-share leaders, Uber and Lyft, also threatened the California officials to suspend their services in the state of California unless an emergency stay was not granted.