| Voters will decide the fate of the gig economy. Here's how |
| | Good morning,
On Election Day, the gig economy will be at stake--in a race that has nothing to do with the U.S. presidency.
At issue is California’s Proposition 22, which proposes officially defining “app-based” rideshare and delivery drivers as independent contractors, rather than employees. Uber, Lyft, DoorDash, Instacart, and Postmates have collectively spent about $275 million supporting the proposition.
And no wonder: Last Thursday, Uber and Lyft were specifically ordered by California’s court of appeals to classify their drivers as employees. Elected officials and labor unions argue that drivers, as contractors, are being exploited--deprived of health insurance, workers' compensation, and other traditional workforce benefits. That, they say, is especially problematic for workers who use driving as their primary source of earnings, a longtime core promise of the gig economy.
The companies say doing so will make their operating costs unsustainable, and that most drivers prefer the schedule flexibility enabled by their "independent" status. They also argue that the proposition would help keep their prices low for consumers. Both have threatened to shut down operations in California if Prop 22 doesn’t pass.
The outcome in California will likely inspire similar actions in other states, and could also prompt federal legislation. Read our story to learn more--including plenty of other ballot measures across the country that could reshape U.S. small business on Election Day. |
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