Proposition 22 (2020)
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| Proposition 22 (2020) | |
|---|---|
| Name | Proposition 22 (2020) |
| Title | App-based Drivers as Independent Contractors and Labor Policies Initiative |
| Vote | November 3, 2020 |
| Result | Passed |
| Yes | 58.6% |
| No | 41.4% |
| Location | California |
| Sponsor | App-Based Drivers Coalition |
| Keywords | gig economy, drivers, labor law, ballot measure |
Proposition 22 (2020) was a California ballot measure that redefined labor classification for app-based drivers and established specific labor and benefit provisions for workers for companies such as Uber Technologies, Lyft, DoorDash, Instacart and Postmates. The measure arose amid disputes involving California Labor and Workforce Development Agency, California Supreme Court, California State Legislature and advocacy from labor organizations including Service Employees International Union and Teamsters. It passed in the November 3, 2020, election and prompted litigation involving courts such as the California Supreme Court and federal tribunals.
Background
Proponents framed the measure in the context of rulings like Dynamex Operations West, Inc. v. Superior Court of Los Angeles County and legislation such as Assembly Bill 5, which were influenced by decisions from the California Court of Appeal and jurisprudence linked to California Labor Code interpretations. Opponents cited precedents involving National Labor Relations Board, United States Supreme Court opinions, and campaigns led by unions including International Brotherhood of Teamsters, Amalgamated Transit Union, and United Food and Commercial Workers International Union. Political figures such as Gavin Newsom, Jerry Brown, and Alex Padilla were involved indirectly through statements and appointments affecting regulatory responses, while advocacy groups like AFL–CIO and Economic Policy Institute provided research and testimony. The legal controversy intersected with corporate actions by Uber Technologies, Lyft, and venture-capital investors connected to firms like Sequoia Capital and Benchmark Capital.
Provisions and Legal Changes
The initiative modified California law by creating a statutory carve-out to classify certain app-based transportation and delivery drivers as independent contractors for companies such as Uber Technologies, Lyft, DoorDash, Instacart and Postmates, while establishing benefit structures administered through entities referenced to Internal Revenue Service reporting and California Employment Development Department frameworks. It mandated minimum earnings guarantees tied to metrics used by platforms owned by corporations related to SoftBank Group investments and required occupational accident insurance and occupational injury indemnity provisions akin to programs overseen by California Department of Industrial Relations and state workers' compensation systems. The measure included provisions for vehicle expense reimbursement, limited collective bargaining for drivers akin to frameworks in disputes seen before the National Labor Relations Board and created an arbitration clause consistent with decisions like AT&T Mobility LLC v. Concepcion.
Campaign and Funding
The campaign featured heavy spending by corporations including Uber Technologies, Lyft, DoorDash, Instacart and Postmates coordinated through the App-Based Drivers Coalition and supported by investors tied to SoftBank Group, GV (Google Ventures), and Andreessen Horowitz networks. Opposition financing came from labor organizations such as Service Employees International Union, Teamsters, AFL–CIO and political action committees associated with figures like Elizabeth Warren supporters and policy analysts from Economic Policy Institute. Advertising and advocacy drew on media outlets including The New York Times, Los Angeles Times, Wall Street Journal, and CalMatters, while polling research was conducted by firms with clients including Pew Research Center and SSRS. Major donors and corporate counsel involved law firms like Gibson Dunn and Latham & Watkins.
Election Results and Implementation
Voters in California approved the measure on November 3, 2020, with statewide tallies supervised by county registrars such as those in Los Angeles County, San Francisco County, and Alameda County, and certified according to processes involving the California Secretary of State. Implementation required administrative steps by agencies including the California Department of Industrial Relations and coordination with registry systems used by companies like Uber Technologies and Lyft. State officials including Gavin Newsom and the California Legislature responded with executive and legislative commentary, while municipal actors in San Francisco, Los Angeles, and Oakland considered local regulatory adjustments.
Legal Challenges and Court Rulings
Following passage, the measure was subject to litigation in state and federal courts, involving litigants such as California Attorney General offices, unions including Service Employees International Union and corporate defendants including Uber Technologies and Lyft. Cases reached the California Supreme Court which reviewed aspects of ballot advertising, statutory interpretation, and constitutional challenges invoking provisions of the California Constitution and state initiatives jurisprudence referencing precedents like People v. Jones. Federal litigation raised questions under the United States Constitution and the Federal Arbitration Act with parties invoking rulings such as Epic Systems Corp. v. Lewis and NLRB v. Weingarten, Inc. for comparative labor-law principles. Appellate courts addressed remedies ranging from partial invalidation to enforcement directives impacting administrative agencies including the California Employment Development Department.
Impact and Responses
The passage prompted responses from labor leaders including Sean O'Brien-aligned unions and policymakers such as Kamala Harris supporters, as well as continued advocacy from progressive organizations linked to Bernie Sanders networks and scholars from institutions like Harvard University, University of California, Berkeley, and Stanford University. Corporations including Uber Technologies and Lyft adjusted business models and public relations handled by firms akin to Edelman and Weber Shandwick. Municipal governments such as San Francisco Board of Supervisors and Los Angeles City Council explored local ordinances addressing vehicle-for-hire regulations, while economic analyses were published by think tanks including Brookings Institution, Heritage Foundation, and Economic Policy Institute. The measure influenced legislative initiatives in other jurisdictions, prompting comparative policy reviews in states like New York, Illinois, and Washington and discussions in international cities such as London, Paris, and Toronto about gig worker classification and benefits.