The Future of California's "Gig" Economy After Prop 22

On November 3rd, 2020, California voters passed Prop 22 with 58% of voters saying yes and 42% of voters saying no. The passage of Prop 22 in the State of California was great news for app-based ride-share and delivery services, because the passage will allow companies like Uber Lyft, Doordash, and Postmates to continue their operations in the state.

Before Prop 22 passed Uber and Lyft had said they were going to leave the state due to the new labor laws established in Assembly Bill 5. Assembly Bill 5, changed the laws for companies hiring freelancers and independent contractors. The bill required companies to hire freelancers and independent contractors as employees and pay employee benefits. Although this bill affected many industries in the state the one that would be most affected would-be app-based ride-share and delivery services, because the way they get to operate with employees choosing hours and getting to work anywhere is the fact that their drivers and deliverers are independent contractors.

Luckily though in California compared to other states it is easier to get proposed ballot measures on the actual election ballot, and after getting enough signatures Prop 22 made it on the ballot, but it did not overturn Assembly Bill 5 as a whole, only overturned it for the app-based ride-share and delivery services. Once on the ballot and not wanting to pull out of the state Uber and Lyft threw $200 million into the Yes campaign to pass the ballot measure. Prop 22 just did not have the support of big corporations it also had the support of a diverse group of organization like the NAACP, California Republican Party, Mothers Against Drunk Driving, California Farm Bureau, and many more.

In a state that is more liberal when it comes to worker’s rights it was surprising to see that 58% of the state voted for Prop 22. Out of California’s 58 counties only 8 had a majority of the voters vote against Prop 22. It was also a very diverse group of voters who passed the proposition. In urban areas Prop 22 had strongest support with Latinos, African Americans, and working-class whites. Prop 22 also had strong support in rural counties and agriculture communities.

With the passage of Prop 22 now in California many people will still be able to make money, get to work, get food, get groceries, and support local restaurants.