Proposition 22 becomes most expensive California ballot measure
California Proposition 22—the App-Based Drivers as Contractors and Labor Policies Initiative—has become the most expensive ballot measure contest to ever appear before voters in California. Based on campaign finance reports available on September 4, the total money raised by supporters and opponents is $186.2 million.
Proposition 22 would classify app-based transportation (rideshare) and delivery drivers as independent contractors and adopt labor and wage policies specific to app-based drivers and companies. The ballot measure was designed to override Assembly Bill 5 (AB 5), signed in September 2019. That bill created regulations regarding whether app-based drivers are classified as employees or independent contractors.
AB 5 established a three-factor test to determine whether a worker is an independent contractor. Those factors are:
- the worker is free from the hiring company's control and direction in the performance of work;
- the worker is doing work that is outside the company's usual course of business; and
- the worker is engaged in an established trade, occupation, or business of the same nature as the work performed.
Protect App-Based Drivers & Services, a coalition of drivers and businesses that supports Proposition 22, said "If rideshare and delivery drivers are forced to be classified as employees with set shifts, it could significantly limit the availability and affordability of these on-demand services that benefit consumers, small businesses and our economy."
Assemblywoman Lorena Gonzalez (D), legislative author of AB 5, opposes Proposition 22. She said AB5 is designed to require that app-based drivers have the same benefits as other California workers, including "earning the minimum wage for all hours worked, social security, normal reimbursements for their costs, overtime pay, and the right to organize.”
The Yes on Proposition 22 campaign has received $181.4 million through September 4 from five rideshare and app-based companies—Lyft, Uber, DoorDash, InstaCart, and Postmates. The campaign No on Prop 22 received $4.8 million through September 4. Two labor unions—the International Brotherhood of Teamsters and SEIU-UHW West—provided about 52% of the campaign's total funds.
Before Proposition 22, the campaigns for four veto referendums in 2008 against gaming compacts in California—Propositions 94, 95, 96, and 97—raised a combined total of $154,554,073 in contributions. The single most expensive ballot measure before this year was California Proposition 87, which had $150,770,683 in total contributions for and against the measure. Proposition 87 would have imposed a severance tax on oil production to fund alternative energy research and projects. It was defeated 55% to 45% in 2006.
Nationwide, the five most expensive ballot measures of 2020 are:
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