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The ballot initiative was backed by gig-work companies that wanted to keep their workers classified as independent contractors and were resisting a 2019 state law that would have considered them ...
It changed the rules in California of who is an employee and who is an independent contractor. While the law applied to lots of industries, it had the biggest impact on app-based ride-hailing and ...
Passed in November 2020 by nearly 60% of voters in California, Prop 22 allows app-based transportation services to classify drivers as independent contractors if they are paid at least 120% of the ...
Proposition 22 was a ballot initiative in California that became law after the November 2020 state election, passing with 59% of the vote and granting app-based transportation and delivery companies an exception to Assembly Bill 5 by classifying their drivers as "independent contractors", rather than "employees".
The California courts have long grappled with the appropriate standard for determining whether a worker is properly classified as an employee or an independent contractor for the purpose of California’s employment laws. At common law, the employment relationship was determined by the degree of control over the details of the work being performed.
After discussions and amendments to the law, which primarily included exceptions for certain professions, the bill first passed the Assembly in May 2019. In August 2019, as the bill neared passage, gig economy companies Uber and Lyft also proposed a negotiated $21 minimum wage but to keep employees as independent contractors as an exception. [25]
Instead, Prop 22 allows app-based transportation services to classify drivers as independent contractors as long as they are paid at least 120% of the minimum wage while passengers are in the car ...
The distinction between independent contractor and employee is an important one in the United States, as the costs for business owners to maintain employees are significantly higher than the costs associated with hiring independent contractors, due to federal and state requirements for employers to pay FICA (Social Security and Medicare taxes) and unemployment taxes on received income for ...