Prop 22 at a glance

Business operations impact:

Business remains uninterrupted
Business is not responsible for worker productivity
Businesses like Uber, Lyft and DoorDash would be required to develop sexual harassment policies, perform background checks, mandate driver safety training

Worker benefits

Health insurance stipend
Companies must pay at least 120% of min wage for every hour spent driving
Insurance that covers illness/injuries on the job

Worker classification

Contract worker
Traditional employee
Pros for gig workers
Flexible hours
Time off
Work whenever/schedule not dictated by employer
Free to seek work elsewhere
New policies prohibiting workplace discrimination
Employers required to develop sexual harassment policies

Pros for consumers

Prices for services remain low
Greater access to rideshare/delivery services
Shorter wait time
Drivers required to undergo background checks/safety training

Pros for major players, like Uber, Lyft and Doordash

Save the cost of overhead, benefits, severance, payroll tax, unemployment insurance, etc.
Higher profits
Don't have to reimburse for fuel or vehicle expenses

What Prop 22 means for gig workers

It is clear that the introduction and intention of AB-5 is to fight for better compensation for workers, but where it falls short is in its attempt to forcibly weave outdated processes into a modern economic issue, without any actual beneficial fix.

Instant Insights /

What Prop 22 means for the American gig economy's future

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