16 November 2020
Unsplash © Kai Pilger

Everything you need to know about Prop 22 and the gig economy

Every week, Maddyness curates articles from other outlets on a topic that is driving the headlines. This Monday, we look at what the passing California’s Proposition 22 - a law that exempts apps like Uber and Lyft from providing employee benefits - means for the gig economy and its workers.

Human Capital: the gig economy in a post-Prop 22 world

Prop 22 means gig workers will continue to be classified as independent contractors in the state of California. It also essentially makes these gig companies exempt from AB-5, the gig worker bill that went into law at the beginning of the year. Lastly, it means we can expect these gig companies, which spent $205 million on the ballot measure, to seek similar legislation in other states. Read the full article via TechCrunch.

How Uber and Lyft persuaded California to vote their way 

Six weeks before election day, Proposition 22 was in trouble. Just 39% of likely voters surveyed in a UC Berkeley Institute of Governmental Studies poll said they would side with Uber, Lyft, DoorDash and other gig economy companies by voting yes on a California ballot measure that would override state law requiring them to treat workers as employees. A big chunk of voters, 25%, was still undecided. Find out what happened next via the Los Angeles Times

Where does Lyft go after its huge win in California?

While the most expensive ballot measure in state history has eaten up much of the attention and lobbying budget of the ride-sharing giants, foundational questions about their business model remain — even if they’re not required to shell out the hundreds of millions that it would have cost to provide benefits if Prop 22 had gone the other way. Read the full article via Intelligencer.

Uber bought itself a law. Here’s why that’s dangerous for struggling drivers like me

Last week, Uber bought itself a law. Along with Lyft, Instacart, DoorFash and Postmates, app companies spent more than $200M to bankroll Proposition 22 in California. With its passage, the law will now exempt drivers like me from basic protections afforded to most other workers in the state. Read the full article in The Guardian

DoorDash lists Prop 22 as a risk factor for its IPO, warning that other states may decide to adopt California’s controversial legislation

Despite its passage, DoorDash cited the ballot measure among its IPO risk factors for two reasons: costs stemming from the new regulations and the potential for other states to adopt similar legislation. Read the full article via Business Insider.