SACRAMENTO, Calif. (KTXL) — This election, voters will decide whether app-based ride-share and food delivery companies should be exempt from California’s labor laws.
Leaders of those companies want their workers to be classified as independent contractors instead of employees, excluding them from Assembly Bill 5, which requires them to do the opposite.
Drivers are at odds on the issue.
Classifying workers as independent contractors would allow the companies to avoid paying minimum wage, overtime, unemployment insurance and worker’s compensation.
Companies instead proposed their own protections model, giving drivers an earnings minimum of 120% minimum wage when driving, a health insurance stipend, pay for some costs when a driver gets hurt on the job, a rest policy and other requirements.
The latest data from the secretary of state’s office show Uber, Lyft, DoorDash, Postmates and Instacart have spent more than $184 million campaigning for Proposition 22.
“Not just more than we’ve seen this year, more than we’ve ever seen in the history of the United States. It is very David and Goliath, if you will,” assemblymember and author of AB 5 Lorena Gonzalez said. “These corporations willing to spend so much money to exempt themselves from basic labor protections, it tells you what it’s worth to them.”
Fiscal analysts say the measure would have a minor increase in state income taxes paid by app-based workers and investors.