CALIFORNIA — More than 11 million voters in California voted yesterday, November 3 to pass Proposition 22, which excludes ride and delivery services from being identified as state employees.
The proposition won by 58 percent. Both Uber and Lyft threatened to leave California if Proposition 22 failed to pass. Collectively, they have spent more than $200 million dollars in what is now the most expensive ballot measure in the history of the state of California.
The victory of Proposition 22 officially rejects a California Supreme Court 2018 ruling and a 2019 California law limiting businesses from identifying certain employees as independent contractors.
Labor unions argue that companies like Uber and Lyft must give protections to drivers like health insurance and minimum wages.
A California group called Gig Workers Rising, who oppose Proposition 22, said that last night’s results is “a loss for our democracy that could open the door to other attempts by corps to write their own laws.”
Supporters of the proposition say that California voting for Proposition 22 indicates that Californians want to keep the current system of identifying drivers as independent contractors.
After Proposition 22 was passed, Uber CEO Dara Khosrowshahi said that “the future of independent work is more secure” and promised benefits “as soon as possible.”
Stocks for Uber increased by 14 points and Lyft increased by 11 points after the proposition passed.
