The staggering choice between two very different American presidents is not the only item on the ballot today in California.
Reuters reports that a ballot proposition called Proposition 22 will decide whether to keep the status quo in terms of employee classifications for big tech gig economy companies like Uber and Lyft, or force classification of all of these workers as company employees, which analysts estimate would add $392 million in costs for the average company.
“A ‘yes’ vote supports this ballot initiative to define app-based transportation (rideshare) and delivery drivers as independent contractors and adopt labor and wage policies specific to app-based drivers and companies,” reads the question, according to Ballotpedia. “A ‘no’ vote opposes this ballot initiative, meaning California Assembly Bill 5 (2019) could be used to decide whether app-based drivers are employees or independent contractors.”
Uber and companies of its kind have pumped $202 million into the ballot initiative. Uber, for its part, says that if the initiative fails, and the company must classify gig workers as employees, it contemplates hiking its prices anywhere from 25% to 111% – a pretty wide margin.
An October 26 Berkeley poll shows that Californians are split on the issue, with about 46% for the proposition and 42% against it.
Journalists outline some of the reasons why individual drivers might be either for or against the initiative.
On the one hand, employee classification obviously confers very tangible benefits to these drivers and other gig economy workers.
On the other hand, there can be barriers to entrance with employee classification – some claim the change would make the gig economy more calcified, and take away some of the freedoms, flexibility and on-ramps for individual contractors.
In a debate that’s been going on for years, California’s Prop 22 may turn out to be a significant decider- Watch what happens at the polls!
