Minnie Che is a student at Harvard Law School.
With official results for the Presidential race still pending, California has passed Proposition 22, an exemption from California employment law that will allow Lyft and Uber to continue classifying workers as independent contractors. It was a closely scrutinized and costly battle. Lyft, Uber, joined by DoorDash, Instacart, and Postmates, put in over $204 million towards a campaign in support of the ballot measure. Labor unions, on the other hand, raised just $16 million, while California Governor Gavin Newsom declined to take a stand either way.
The Proposition won with 58% of the vote. It exempts gig companies from providing the full employment benefits required under state law but will require them to provide an hourly wage equal to 120% of either a local or statewide minimum wage. Uber and Lyft must also provide a stipend for drivers to purchase health insurance. However, work hours only include time spent picking up and driving a rider. It does not account for the time spent waiting in between trips. Drivers for Lyft and Uber will now have fewer rights than they did under AB5, a law passed in 2019 that changes the way companies classify employees. Labor unions state that they will continue to fight for “fair wages, sick pay and care when they’re hurt at work.” Gig Workers Rising, one of several California groups that organizes app-based workers and opposed the initiative, has called the ballot passage a “a loss for our democracy that could open the door to other attempts by corps to write their own laws.”
Daily News & Commentary
Start your day with our roundup of the latest labor developments. See all
February 4
Lawsuit challenges Trump Gold Card; insurance coverage of fertility services; moratorium on layoffs for federal workers extended
February 3
In today’s news and commentary, Bloomberg reports on a drop in unionization, Starbucks challenges an NLRB ruling, and a federal judge blocks DHS termination of protections for Haitian migrants. Volatile economic conditions and a shifting political climate drove new union membership sharply lower in 2025, according to a Bloomberg Law report analyzing trends in labor […]
February 2
Amazon announces layoffs; Trump picks BLS commissioner; DOL authorizes supplemental H-2B visas.
February 1
The moratorium blocking the Trump Administration from implementing Reductions in Force (RIFs) against federal workers expires, and workers throughout the country protest to defund ICE.
January 30
Multiple unions endorse a national general strike, and tech companies spend millions on ad campaigns for data centers.
January 29
Texas pauses H-1B hiring; NLRB General Counsel announces new procedures and priorities; Fourth Circuit rejects a teacher's challenge to pronoun policies.