Proposition 22 passes in California exempting ride-hailing apps from classifying drivers as employees
Voters in US state California have passed a ballot measure to exempt ride hailing companies, such as Uber and Lyft from having to classify their drivers as employees instead of independent contractors. The Proposition 22 (Prop 22) side steps the AB5 bill, which regulates the conditions to determine whether workers are employees or contractors; making ride-hailing companies to keep classifying their drivers as independent contractors. The Prop 22 allows ride-hailing and delivery drivers to continue to be treated as independent contractors with some benefits concessions, such as a minimum earnings guarantee based on engaged time when a driver is giving a ride or delivering a request, but not the time they spend waiting to provide service. Uber and Lyft stocks raised over 11% after the ballot results.