By: Jessica Black
On August 20, 2021, a California judge issued a decision striking down a ballot measure in the state that had allowed rideshare companies to classify drivers as independent contractors rather than employees. The measure, known as Proposition 22, allowed rideshare companies such as Uber and Lyft to deny drivers employee benefits and job protections such as the right to sick pay, minimum wage, and health benefits. It also provided a liability shield that allowed Uber and Lyft to evade responsibility for the actions of their drivers.
Ride-hailing and delivery service corporations including Uber, Lyft, Postmates, Instacart, and DoorDash spent more than $200 million attempting to influence Californians to support the ballot measure. Uber and Lyft went so far as threatening to stop providing services in the state if the measure was not passed.
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