
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
May 27
a judge extends a pause on the Trump Administration’s mass-layoffs, the Fifth Circuit refuses to enforce an NLRB order, and the Texas Supreme court extends workplace discrimination suits to co-workers.
May 26
Federal court blocks mass firings at Department of Education; EPA deploys new AI tool; Chiquita fires thousands of workers.
May 25
United Airlines flight attendants reach tentative agreement; Whole Foods workers secure union certification; One Big Beautiful Bill Act cuts $1.1 trillion
May 23
United Steelworkers union speaks out against proposed steel merger; Goodwin Procter turns over diversity data; Anthropic AI's fair use claim over authors' creative work
May 22
BLS releases statistics on foreign-born workers; courts vacate EEOC protections; SCOTUS considers takings case.
May 21
Supreme Court grants the Trump Administration the ability to end Temporary Protected Status for Venezuelan immigrants; a federal judge permits airline customer service agents to pursue litigation rather than arbitration in a wage dispute; and NLRB prosecutors limit when they seek consequential remedies for unfair labor practices.