California classified workers from the gig economy as full-time employees when it was passed in September 2019 with Assembly Bill 5 (AB5). The state has determined that the drivers who hired Uber and Lyft qualify under California law for the same protection offered to employees. Last August, the San Francisco High Court found that Uber and Lyft violated the law by continuing to classify their workers as contractors.
In the course of Prop 22, California voters gave drivers of Uber and Lyft, as well as their Instacart and DoorDash counterparts, access to health care subsidies and insurance policy plans. At the same time, they permanently classified those workers as contractors and denied them the protection they would receive as full-time employees of those companies. Uber, Lyft, DoorDash and Instacart spent more than $ 200 million building support for Prop 22, and it worked. In the early polls, 40 percent of the people who shared it, yes voted on the benchmark, said they did so because they thought they were helping workers in the economy to ensure a living wage. Except for the California Supreme Court overturning the measure, lawmakers are unlikely to be able to do anything about the measure, as one of the key provisions stipulates that a seven-eighth legislative majority is needed to amend it.