Beautiful Virgin Islands

Monday, Aug 04, 2025

Uber and Lyft expected to prevail in California ballot measure exempting them from state labor law

Uber and Lyft expected to prevail in California ballot measure exempting them from state labor law

The proposition would allow drivers for app-based transportation and delivery companies to be classified as independent contractors in many circumstances.

California voters decided Tuesday that Uber and Lyft should be exempt from state labor law that aimed to make their drivers employees rather than contractors, according to projections from NBC News.

Voters made the call on California’s Proposition 22, a ballot measure that essentially became one of Uber and Lyft’s last hopes in the state to continue their operations under the status quo.

The proposition would allow drivers for app-based transportation and delivery companies to be classified as independent contractors in many circumstances. While that would disqualify them for benefits granted to employees, the measure also entitles drivers to new benefits like minimum earnings and vehicle insurance.

Several gig economy apps backed the measure, including Uber, Lyft, DoorDash, Instacart and Postmates, which Uber is acquiring. The support from these companies helped raise nearly $203 million to back the measure, while opponents raised less than $20 million, according to tallies compiled by Ballotpedia.

Democratic presidential nominee Joe Biden opposed the measure. Biden tweeted in May that Californians should vote no on the initiative and said, “gig economy giants are trying to gut the law and exempt their workers. It’s unacceptable.”


While Uber and Lyft were able to raise gobs of cash from venture capitalists while private and have multi-billion dollar valuations on the public market, neither has reached profitability. That makes the contractor-driver model especially important to the businesses, allowing them to avoid costly benefits associated with employment, such as unemployment insurance.

The companies have warned they’d likely have to pass on increased costs of worker reclassification to consumers. Uber estimated in a blog post earlier this year that it would have to raise rider prices between 25 percent and 111 percent in parts of California to cover the costs.

The New York Times reported in August that both companies were considering a fleet-like model, similar to traditional taxis. Under that model, the companies would license their brands to operators like a franchise, according to the Times.

The proposition has significant implications for DoorDash and Instacart as well, both of which are reportedly preparing to go public. Like Uber and Lyft, these companies also rely heavily on gig workers for their delivery services. Without the passage of Proposition 22, the companies would likely worry about potentially larger expenses to hire workers as employees.

Critics like Rep. Ro Khanna, D-Calif., have said that there’s nothing written into current labor law stopping Uber and Lyft from providing flexibility to drivers while classifying them as employees. The companies have countered that the logistics of such a model would be untenable since it would be too difficult to track time worked.

The companies faced a setback in August when a trial judge granted a preliminary injunction forcing them to reclassify their drivers as employees, although that ruling has yet to go into effect as the case makes its way through the legal process. The lawsuit’s fate is unclear now that the ballot measure has passed.

Representatives from Uber, Lyft and the California attorney general’s office did not immediately respond to requests for comment

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
Tesla Seeks Shareholder Approval for $29 Billion Compensation Package for Elon Musk
Nvidia is cutting prices on its RTX 50-series graphics cards after sales slowed and inventories piled up
Ghislaine Maxwell Transferred to Minimum-Security Prison Amid Ongoing DOJ Discussions
U.S. Tariffs Surge to Highest Levels in Nearly a Century Under Second Trump Term
Matt Taibbi Slams Media for Role in Russiagate Narrative
Pilots Call for Mental Health Support Without Stigma
All Five Trapped Miners Found Dead After El Teniente Mine Collapse
Ong Beng Seng Pleads Guilty in Corruption Case Linked to Former Singapore Transport Minister
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
Italy Fines Shein One Million Euros for Misleading Sustainability Claims
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
Declassified Annex Links Soros‑Affiliated Officials and Clinton Campaign to ‘Russiagate’ Narrative
UK's Online Safety Law: A Front for Censorship
Nationwide Protests Erupt in Brazil Demanding Presidential Resignation
Parents Abandon Child at Barcelona Airport Over Passport Issue
Mystery Surrounds Death of Brazilian Woman with iPhones Glued to Her Body
Bus Driver Discovers Toddler Hidden in Suitcase in New Zealand
Switzerland Celebrates 734 Years of Independence Amid Global Changes
U.S. Opens Official Investigation into Former Trump Prosecutor Jack Smith
Leaked audio of Canada's new PM Mark Carney admitting the truth about the Net Zero agenda: "We're gonna make a lot of money off of this."
China Enforces Comprehensive Ban on Cryptocurrency Activities
Absolutely 100% Realistic EVO Series Doll by EXDOLL (Chinese Company) used mainly for carnal purposes
World Economic Forum founder Klaus Schwab: "In this new world, we must accept... total transparency. You have to get used to it. You have to behave accordingly. But if you have nothing to hide, you shouldn't be afraid."
Meet Mufti Hamid Patel, head of Office for Standards in Education in Pakistan
George Soros tells the World Economic Forum: "President Trump is a con man and the ultimate narcissist, who wants the world to revolve around him."
Hamas are STARVING the hostages.
Decline in Tourism in Majorca Amidst Ongoing Anti-Tourism Protests
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
Poland Begins Excavation at Dziemiany After New Clue to World War II‑Era Nazi Treasure
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Threatens Canada with Tariffs Over Palestinian State Recognition
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Trump Sues Murdoch in “Heavyweight Bout”: Lawsuit Over Alleged Epstein Letter Sets Stage for Courtroom Showdown
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
×