Uber Drivers, Other Gig Workers in California to Remain Independent Contractors

By Kurt Stolz on 4 November 2020
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Golden Gate Bridge in San Francisco

Drivers for so-called gig economy companies in California such as Uber and Lyft will remain independent contractors and not become employees of their respective companies after voters in that state approved Proposition 22.

The measure allows gig economy companies to continue to treat drivers as independent contractors.

Proposition 22 was conceived by Uber, Lyft, and Door Dash to exempt their companies and others from a recent state labor law that would have required them to treat the drivers as employees. This in turn would have required that they pay for healthcare and unemployment insurance and provide other benefits.

The new measure, which came about after a 2018 State Supreme Court ruling and a 2019 state law that said that workers who performed tasks within a company’s regular scope of business and who were controlled by the company and did not operate their own firms must be treated as employees, does provide a wage floor and some benefits to the drivers but

(Photo: Accura Media Group)

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