Arab Press

بالشعب و للشعب
Saturday, May 31, 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

Arab Press
0:00
0:00
Close
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Netanyahu Accuses Starmer of Siding with Hamas
Calls Grow to Resume Syrian Asylum Claims in UK
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Denmark Increases Retirement Age to 70, Setting a European Precedent
Iranian Director Jafar Panahi Wins Palme d'Or at Cannes
Israeli Airstrike Kills Nine Children of Gaza Doctor
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
Mount Lewotobi Laki-Laki Erupts Again, Spewing Ash Cloud over Flores Island
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
Senate Democrats Move to Censure Trump Over Qatar Jet Gift
Hamas Releases Last Living US Hostage from Gaza Amid Ongoing Conflict
×