Uber, Lyft Drivers Exempt From Employee Status
CNN PROJECTS PROP 22 HAS PASSED IN CALIFORNIA; IT EXEMPTS COMPANIES LIKE UBER AND LYFT FROM HAVING TO CLASSIFY DRIVERS AS EMPLOYEES AND GIVING THEM THE ASSOCIATED BENEFITS
(CNN) – In a major win for gig economy companies, CNN projects California voters have passed Proposition 22.
The controversial ballot measure exempts companies like Uber and Lyft from having to classify their gig workers in California as employees.
Instead, they can continue to classify them as independent contractors.
Prop 22 side-steps a new law that went into effect in January that would have forced gig economy companies to give workers more benefits, such as sick days and health care benefits, that come with the classification of “employee.”
Under Prop 22, the companies will give limited health care options and guarantee minimum earnings.
Lyft and Uber had threatened to stop doing business in California if Prop 22 failed.