Good morning,
California is setting trends once again.
On Tuesday, voters in California decisively passed Proposition 22, which allows rideshare companies like Uber and Lyft to categorize their drivers as independent contractors rather than employees. It’s a win for the businesses, which can now avoid paying drivers expensive benefits like health insurance and workers’ compensation. However, as part of the proposition, those businesses must now offer their drivers a slimmed-down benefits list including tiered levels of health care subsidies and occupational accident insurance.
The hybrid approach is a major step toward the creation of a new employment category, made specifically for the gig economy, in which some contractors could hold quasi-employee workplace benefits and protections. Experts say the approach is bound to spread to states outside California, and could eventually become codified in federal law.
The potential implications are myriad: While new worker classification rules could encourage more startups to build around gig economics, they could also prompt companies with full-time employees to shift toward a hybrid model to minimize expenses.
Read our story to learn how Prop 22 could usher in a brand-new class of workers nationwide--and how contractors and startups alike could benefit. |
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