• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Skip to navigation
Close Ad

The Spoon

Daily news and analysis about the food tech revolution

  • Home
  • Podcasts
  • Events
  • Newsletter
  • Connect
    • Custom Events
    • Slack
    • RSS
    • Send us a Tip
  • Advertise
  • Consulting
  • About
The Spoon
  • Home
  • Podcasts
  • Newsletter
  • Events
  • Advertise
  • About

California Passes Prop. 22, Leaving Gig Workers as Independent Contractors

by Jennifer Marston
November 4, 2020November 4, 2020Filed under:
  • Business of Food
  • Delivery & Commerce
  • Featured
  • Restaurant Tech
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to email this to a friend (Opens in new window)

In a win for third-party delivery services and other big tech companies, California has passed Proposition 22, ensuring gig workers will remain independent contractors rather than employees of these companies.

Uber, DoorDash, Instacart, and other tech companies that use gig workers to fulfill the last mile of food deliveries backed Prop. 22, which is the most expensive ballot-measure campaign in California history.

The measure, a response to California’s Assembly Bill 5, which was signed into law last year, exempts companies from having to actually employ drivers and in doing so pay for healthcare, sick leave, and other benefits.

Uber, DoorDash, and other companies that rely on gig workers have long said that classifying drivers as employees would drastically change the way the companies do business. Less talked about but just as obvious is the point that classifying drivers as employees would undercut delivery and rideshare services’ still-elusive profitability. In August, Uber and Lyft even threatened to pull out of California after a judge ordered the companies to reclassify their employees in keeping with AB 5.

Uber CEO Dara Khosrowshahi sent an email last night thanking drivers, saying, “The future of independent work is more secure because so many drivers like you spoke up,”

Prop 22. opponents, such as labor groups, argue that the measure allows Uber and other tech companies to skirt basic obligations to workers, including minimum wage, health insurance, and paid sick leave. That last item is an especially hot-button issue at a time when COVID-19 cases are on the rise once again.

Gig Workers Rising, which opposed Prop. 22, called the measure “a loss for our democracy that could open the door to other attempts by corps to write their own laws.”


Related

Get the Spoon in your inbox

Just enter your email and we’ll take care of the rest:

Find us on some of these other platforms:

  • Apple Podcasts
  • Spotify
Tagged:
  • DoorDash
  • Prop. 22
  • third-party delivery
  • Uber

Post navigation

Previous Post Meat-Tech 3D Closes $7M Funding Round, Files for IPO
Next Post Woowa Delivery Robots to Access Buildings and Ride Elevators Next Year

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Get The Spoon in Your Inbox

The Spoon Podcast Network!

Feed your mind! Subscribe to one of our podcasts!

Nearly Seven Years After Launching Kickstarter, Silo Finally Delivers Next-Gen Home Food Storage System
What Flavor Unlocks
Starbucks Unveils Green Dot Assist, a Generative AI Virtual Assistant for Coffee Shop Employees
Impulse Announces Its Battery-Integrated Cooktop Becomes First Certified to Applicable UL Safety Standards
Tasting Cultivated Seafood in London’s East-end

Footer

  • About
  • Sponsor the Spoon
  • The Spoon Events
  • Spoon Plus

© 2016–2025 The Spoon. All rights reserved.

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.