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
September 8
In today’s News and Commentary, workers and unions across America celebrate Labor Day, California’s SEIU Local 1000 prepares for a strike authorization vote, and New York City creates the Office of Worker Power. On Monday, labor unions and workers gathered in cities across the United States in celebration of Labor Day. Parades and rallies took […]
September 7
Eighth Circuit finds DOL order violates Seventh Amendment; 1,300 workers at Encore Boston Harbor go on strike.
September 6
Encore casino workers strike; President Trump commutes sentence of former Philadelphia IBEW leader; Durham labor activist ends his hunger strike against Amazon.
September 4
NLRB advice memo narrows political protest protections; NLRB asks federal appeals court for deference.
September 3
Seond Circuit rejects a NLRB standard for union insignia in employer dress codes; House Republicans ramp up labor union investigations.
September 2
Trump’s US Steel agreement impacts labor talks; Mamdani clashes with teachers’ union; Boeing plans to resume bargaining talks.