With the 2020 election now (mostly) in the rearview mirror, one outcome stands out as uniquely bittersweet. This cycle, California voters approved the much-discussed Proposition 22—which exempted some “gig economy” companies, such as Uber and Lyft, from being forced to classify their drivers as employees.
Ultimately, Prop. 22 was a direct reaction to another California law, AB5, which passed earlier this year. Touted as a measure to “protect” workers from the business arrangements that they had made for themselves, the law created a new three-part test to determine whether someone was an employee or an independent contractor—essentially redefining those categories and expanding the employee classification far beyond what is generally accepted elsewhere.
Proponents of the law claimed that many workers, like drivers for Uber and Lyft, were unfairly classified as independent contractors—letting companies off the hook when it comes to a variety of labor laws that apply only to employees, such as minimum wage requirements and other mandated benefits.
Continue reading at Southern California News Group.
Ben Wilterdink is the former Director of Programs at the Archbridge Institute. Follow him @bgwilterdink.
Economics of Flourishing
With the 2020 election now (mostly) in the rearview mirror, one outcome stands out as uniquely bittersweet. This cycle, California voters approved the much-discussed Proposition 22—which exempted some “gig economy” companies, such as Uber and Lyft, from being forced to classify their drivers as employees.
Ultimately, Prop. 22 was a direct reaction to another California law, AB5, which passed earlier this year. Touted as a measure to “protect” workers from the business arrangements that they had made for themselves, the law created a new three-part test to determine whether someone was an employee or an independent contractor—essentially redefining those categories and expanding the employee classification far beyond what is generally accepted elsewhere.
Proponents of the law claimed that many workers, like drivers for Uber and Lyft, were unfairly classified as independent contractors—letting companies off the hook when it comes to a variety of labor laws that apply only to employees, such as minimum wage requirements and other mandated benefits.
Continue reading at Southern California News Group.
Ben Wilterdink
Ben Wilterdink is the former Director of Programs at the Archbridge Institute. Follow him @bgwilterdink.
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