Uber and Lyft Prevail on Proposition 22. Drivers are contractors, not employees.

Hooray for California

The state’s new labor law, AB5, classified Uber and Lyft drivers as employees. 

The companies put proposition 22 on the ballot in response.

I am pleased to report Uber and Lyft Prevail in California Proposition exempting them from state labor law.

Key Points

• California voters weighed in on Proposition 22, a ballot measure that would exempt drivers for app-based transportation and delivery companies from being classified as employees.
• The ballot measure had essentially become one of Uber and Lyft’s last hopes in the state to continue their operations under the status quo.
• The companies faced a lawsuit from California’s attorney general, accusing them of violating the state’s new labor law, AB5.

Drivers Chime In

“In a historic election, California drivers sent a clear message that we want to be independent, and that what’s best for us is a new approach that preserves our independence while providing new benefits,” Bay Area rideshare driver Jimmy Strano said in a statement shared by Yes on 22, a committee funded by Uber, Lyft and DoorDash.

A Lyft spokesperson deferred to the statements from Yes on 22. Representatives from Uber and the California attorney general’s office did not immediately respond to requests for comment.

Prop 22 Final Results

Ride Share Guy on Prop 22

The Price of Sanity

Sanity prevailed but political action committees spent more than $785 million to support or oppose the 12 propositions on the November ballot, most of that by big tech firms.