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California Proposition 22, App-Based Drivers as Contractors and Labor Policies Initiative (2020)
California Proposition 22 | |
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![]() | |
Election date November 3, 2020 | |
Topic Business regulation and Labor and unions | |
Status![]() ![]() | |
Type State statute | Origin Citizens |
California Proposition 22, the App-Based Drivers as Contractors and Labor Policies Initiative, was on the ballot in California as an initiated state statute on November 3, 2020. Proposition 22 was approved.
A "yes" vote supported this ballot initiative to define app-based transportation (rideshare) and delivery drivers as independent contractors and adopt labor and wage policies specific to app-based drivers and companies. |
A "no" vote opposed this ballot initiative, meaning California Assembly Bill 5 (2019) could be used to decide whether app-based drivers are employees or independent contractors. |
Election results
California Proposition 22 |
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Result | Votes | Percentage | ||
9,958,425 | 58.63% | |||
No | 7,027,820 | 41.37% |
Reactions
The following is a list of reactions to the approval of Proposition 22:
- Uber CEO Dara Khosrowshahi said, "Going forward, you'll see us more loudly advocate for new laws like Prop 22." Khosrowshahi added that Uber hoped to "work with governments across the U.S. and the world to make this a reality."[1]
- DoorDash CEO Tony Xu said, "Now we're looking ahead and across the country, ready to champion new benefits structures that are portable, proportional and flexible."[2]
- Anthony Foxx, former U.S. Secretary of Transportation (2013-2017) and Chief Policy Officer for Lyft, said, "I think Prop 22 has now created a structure for us to discuss with leaders in other states and Washington, potentially. We think that prop 22 has now created a model that can be replicated and can be scaled."[3]
- Robert Reich, former U.S. Secretary of Labor (1993-1997), said, "Prop 22 is great for employers, but it’s a huge loss for workers. This will encourage other companies to reclassify their work force as independent contractors, and once they do, over a century of labor protections vanishes overnight."[4]
- Meredith Whittaker, a professor at New York University, and Veena Dubal, a law professor at University of California, Hastings, wrote, "To get Prop 22 passed, gig companies — which have yet to turn a profit — spent a historic $205 million on their campaign, effectively creating a political template for future anti-democratic, corporate law-making. ... This corrupt campaign worked. $200 million is a lot of money, but it’s a lot less than the long-term prospect of paying a living wage to workers and being responsible to consumers for safety and accessibility. Their gamble paid off, for now."[5]
Aftermath
Castellanos v. California
Lawsuit overview | |
Issue: Did Proposition 22 (a) limit the legislature's constitutional power to extend compensation benefits, (b) include a definition of amendment that was too expansive, and (c) violate the single-subject rule? | |
Court: Alameda County Superior Court | |
Ruling: State appeals court reversed the superior court's ruling and found the proposition is constitutional; California Supreme Court upheld state appeal's court ruling | |
Plaintiff(s): Hector Castellanos, Joseph Delgado, Saori Okawa, Michael Robinson, Service Employees International Union California State Council, and Service Employees International Union | Defendant(s): State of California and California Labor Commissioner Lilia García-Brower |
Source: California Supreme Court
On January 12, 2021, the Service Employees International Union (SEIU) and four app-based drivers sued the state government in the California Supreme Court, seeking to have Proposition 22 declared unconstitutional and unenforceable.[6]
Bob Schoonover, president of SEIU California, said, "Prop. 22 doesn't just fail our state rideshare drivers, it fails the basic test of following our state constitution. The law as written by Uber and Lyft denies drivers rights under the law in California and makes it nearly impossible for lawmakers to fix these problems."[7]
Kathy Fairbanks, a spokesperson for the campaign behind Proposition 22, cited a statement from an app-based driver, which said, "Meritless lawsuits that seek to undermine the clear democratic will of the people do not stand up to scrutiny in the courts."[8]
On February 3, 2021, the state Supreme Court rejected a direct review, meaning the lawsuit would need to be filed in a lower court first to continue.[9] On February 11, the plaintiffs refiled the lawsuit in the Alameda County Superior Court.
On August 20, 2021, Alameda County Superior Court Judge Frank Roesch ruled that two sections of Proposition 22 were unconstitutional and that the measure as whole was unenforceable. Roesch ruled that Proposition 22 unconstitutionally limited the power of the legislature and that it violated the state's single-subject rule.[10]
On December 13, 2022, the California First District Court of Appeal heard arguments in the appeal.[11]
On March 13, 2023, the state appeals court reversed the lower court's ruling that found Proposition 22 to be unconstitutional. The appeals court upheld the law but severed a provision that required a seven-eighths majority vote of the state legislature to amend workers' rights to collective bargaining.[12]
On June 28, 2023, the California Supreme Court announced it would take up the appeal.[13]
On July 25, the California Supreme Court ruled that Proposition 22 was constitutional.[14]
Arguments
Petitioners made the following arguments in the litigation:[6]
- Section 4 of Article XIV of the California Constitution "grants to the Legislature 'plenary power, unlimited by any provision of this Constitution' to establish and enforce a complete system of workers’ compensation." Proposition 22, according to the petitioners, removed app-based drivers from the state's system of workers’ compensation, and therefore limited the legislature's constitutional power to extend workers’ compensation benefits to app-based drivers.
- In California, the state Legislature cannot amend a voter-approved ballot initiative, unless the initiative itself allows for legislative changes, without asking voters to approve the changes. Section 2 of Article II of the California Constitution, according to the petitioners, provides that the state Supreme Court decides when legislation is an amendment to a voter-approved ballot initiative. Proposition 22 contained a provision that defined amendment to include (a) unequal regulatory burdens between app-based rideshare companies and others performing similar work and (b) laws that allow for organizations, such as unions, to represent app-based drivers in connection with their contractual relationships with companies. Petitioners argued that these provisions are too expansive and "impermissibly usurped this Court’s authority to 'say what the law is' by determining what constitutes an 'amendment'", and "impermissibly invaded the Legislature’s broad authority to legislate in areas not substantively addressed by the initiative."
- Section 8 of Article II of the California Constitution includes a single-subject rule, meaning that an initiative cannot embrace more than one subject. Petitioners argued that the provision of Proposition 22 on amendments were "not substantively addressed in the measure" and "grossly deceived the voters, who were not told they were voting to prevent the Legislature from granting the drivers collective bargaining rights, or to preclude the Legislature from providing incentives for companies to give app-based drivers more than the minimal wages and benefits provided by Proposition 22."
Overview
What were app-based drivers classified as for employment?
Proposition 22 considered app-based drivers to be independent contractors and not employees or agents. Therefore, the ballot measure overrode Assembly Bill 5 (AB 5), signed in September 2019, on the question of whether app-based drivers are employees or independent contractors.[15]
The ballot initiative defined app-based drivers as workers who (a) provide delivery services on an on-demand basis through a business’s online-enabled application or platform or (b) use a personal vehicle to provide prearranged transportation services for compensation via a business’s online-enabled application or platform.[15] Examples of companies that hired app-based drivers included Uber, Lyft, and DoorDash. The ballot measure did not affect how AB 5 was applied to other types of workers.
What is Assembly Bill 5 (AB 5)?
- See also: California Assembly Bill 5 (2019)
AB 5 established a three-factor test to decide a worker's status as an independent contractor. The three-factor test requires that (1) the worker is free from the hiring company's control and direction in the performance of work; (2) the worker is doing work that is outside the company's usual course of business; and (3) the worker is engaged in an established trade, occupation, or business of the same nature as the work performed.[16]
Responding to AB 5, Tony West, the chief legal officer for the ridesharing business Uber Technologies, stated, "Because we continue to believe drivers are properly classified as independent, and because we’ll continue to be responsive to what the vast majority of drivers tell us they want most—flexibility—drivers will not be automatically reclassified as employees. ... We expect we will continue to respond to claims of misclassification in arbitration and in court as necessary, just as we do now."[17] Likewise, John Zimmer, president of Lyft, said, "We are focused on operating as we are."[18]
On August 10, 2020, the Superior Court of San Francisco ruled that Uber and Lyft violated AB 5 and misclassified their workers. Attorney General Xavier Becerra responded, "The court has weighed in and agreed: Uber and Lyft need to put a stop to unlawful misclassification of their drivers while our litigation continues." Both Uber and Lyft stated that, unless the court's ruling was postponed, their companies could suspend app-based operations within California.[19][20][21][22] On October 22, the California First District Court of Appeal upheld the lower court's ruling, requiring Uber and Lyft to implement changes within 30 days unless Proposition 22 is approved.[23][24]
Who was behind the campaigns surrounding Proposition 22?
- See also: Campaign finance
On August 30, 2019, three companies—DoorDash, Lyft, and Uber—each placed $30 million into campaign accounts to fund a ballot initiative campaign should the legislature pass AB 5 without compromising with the companies. "We remain focused on reaching a deal, and are confident about bringing this issue to the voters if necessary," said Lyft spokesperson Adrian Durbin.[25][26][27] Gov. Gavin Newsom (D) signed AB 5 on September 18 without an exemption for app-based drivers and employers. The ballot initiative was filed on October 29, 2019. Brandon Castillo, a spokesperson for the campaign supporting the initiative, stated, "We're going to spend what it takes to win. It's been widely reported that three of the companies already shifted $90 million, but we're still in the early phases. The bottom line is: We're committed to passing this."[28] The companies Instacart (Maplebear, Inc.) and Postmates also joined the campaign.[29]
Yes on Proposition 22 received $205.37 million, which was the most funds that an initiative campaign had ever received in California (not adjusted for inflation). Uber contributed $59.5 million, DoorDash contributed $52.1 million, Lyft provided $49.0 million, InstaCart provided $31.6 million, and Postmates provided $13.3 million.
The campaign No on Prop 22 received $18.88 million. SEIU Local 721, the International Brotherhood of Teamsters, the California Labor Federation, SEIU Local 1021, SEIU-UHW West, UFCW International Union, and UFCW Local 770—labor unions or union-affiliated committees—each contributed $1 million or more to No on Prop 22.
What else did the ballot measure change?
Since Proposition 22 considered app-based drivers to be independent contractors and not employees, state employment-related labor laws did not cover app-based drivers. Proposition 22 enacted labor and wage policies that are specific to app-based drivers and companies, including:[15]
- payments for the difference between a worker's net earnings, excluding tips, and a net earnings floor based on 120% of the minimum wage applied to a driver's engaged time and 30 cents, adjusted for inflation after 2021, per engaged mile;
- limiting app-based drivers from working more than 12 hours during a 24-hour period, unless the driver has been logged off for an uninterrupted 6 hours;
- for drivers who average at least 25 hours per week of engaged time during a calendar quarter, require companies to provide healthcare subsidies equal to 82% the average California Covered (CC) premium for each month;
- for drivers who average between 15 and 25 hours per week of engaged time during a calendar quarter, require companies to provide healthcare subsidies equal to 41% the average CC premium for each month;
- require companies to provide or make available occupational accident insurance to cover at least $1 million in medical expenses and lost income resulting from injuries suffered while a driver was online (defined as when the driver is using the app and can receive service requests) but not engaged in personal activities;
- require the occupational accident insurance to provide disability payments of 66 percent of a driver's average weekly earnings during the previous four weeks before the injuries suffered (while the driver was online but not engaged in personal activities) for upwards of 104 weeks (about 2 years);
- require companies to provide or make available accidental death insurance for the benefit of a driver's spouse, children, or other dependents when the driver dies while using the app;
Proposition 22 defined a driver's engaged time as the time between accepting a service request and completing the request.[15]
Uber CEO Dara Khosrowshahi said, "What Prop. 22 is about is starting to move into the best of two worlds: you’ve got flexibility, you’re your own boss, you’re your own CEO, but you do have protections."[30] In Rigging the Gig, researchers with the Partnership for Working Families (PWF) and National Employment Law Project (NELP) wrote, "the benefits contained in the initiative pale in comparison to what workers are entitled to under state law."[31]
Proposition 22 also required the companies to: develop anti-discrimination and sexual harassment policies; develop training programs for drivers related to driving, traffic, accident avoidance, and recognizing and reporting sexual assault and misconduct; have zero-tolerance policies for driving under the influence of drugs or alcohol; and require criminal background checks for drivers. The ballot initiative criminalized false impersonation of an app-based driver as a misdemeanor.[15]
Amending Proposition 22 required a seven-eights (87.5%) vote in each chamber of the California State Legislature and the governor's signature, provided that the amendment is consistent with, and furthers the purpose of, Proposition 22. Changes that are not considered consistent with, and furthering the purpose of, Proposition 22 needed voter approval.[15]
Text of measure
Ballot title
The ballot title was as follows:[32]
“ |
Exempts App-Based Transportation and Delivery Companies from Providing Employee Benefits to Certain Drivers. Initiative Statute.[33] |
” |
Ballot summary
The ballot summary was as follows:[32]
“ |
|
” |
Fiscal impact
The fiscal impact statement was as follows:[32]
“ |
Minor increases in state income taxes paid by risdeshare and delivery company drivers and investors.[33] |
” |
Full text
The full text of the ballot initiative is below:[15]
Readability score
- See also: Ballot measure readability scores, 2020
Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The attorney general wrote the ballot language for this measure.
|
Support
Yes on 22 - Save App-based Jobs & Services led the campaign in support of the ballot initiative.[34]
Supporters
Save App-Based Jobs & Services provided a list of supporters, which is available here.[35]
Political Parties
Corporations
Unions
- California Peace Officers Association
- California Police Chiefs Association
- California State Sheriffs' Association
Organizations
- CalAsian Chamber of Commerce
- California Black Chamber of Commerce
- California Chamber of Commerce
- California Farm Bureau Federation
- California Hispanic Chambers of Commerce
- California NAACP State Conference
- California Small Business Association
- California State National Action Network
- California Taxpayers Association
- Crime Victims United of California
- Mothers Against Drunk Driving
- National Black Chamber of Commerce
- National Taxpayers Union
Arguments
Official arguments
The following is the argument in support of Proposition 22 found in the Official Voter Information Guide:[36]
|
Opposition
No on Prop 22 led the campaign in opposition to the ballot initiative.[37][38]
Opponents
No on Prop 22 provided a list of opponents, which is available here.
Officials
- U.S. Senator Kamala D. Harris (D)
- Vermont U.S. Senator Bernie Sanders (Independent)
- Massachusetts U.S. Senator Elizabeth Warren (D)
- U.S. Representative Barbara Lee (Nonpartisan)
- State Senator Maria Elena Durazo (D)
- State Senator Nancy Skinner (D)
- State Senator Scott Wiener (D)
- Assemblyperson Lorena Gonzalez Fletcher (D)
- Speaker of the State Assembly Anthony Rendon (D)
- State Assemblyperson Buffy Wicks (D)
- Stockton Mayor Michael Tubbs (Nonpartisan)
- State Insurance Commissioner Ricardo Lara (D)
- State Superintendent of Public Instruction Tony Thurmond (D)
- State Controller Betty Yee (D)
Former Officials
- Former Vice President Joe Biden (D)
- Former U.S. Secretary of Labor Robert Reich
Political Parties
Unions
- American Federation of State, County and Municipal Employees
- California Labor Federation
- California Professional Firefighters
- California State Council of Laborers
- California Teachers Association
- SEIU California State Council
- State Building and Construction Trades Council of California
- Transport Workers Union of America
- Unite HERE
- United Food and Commercial Workers Western States Council
Organizations
- ACLU of Southern California
- California Alliance for Retired Americans
- California League of Conservation Voters
- Democracy for America
- Gig Workers Rising
Arguments
Official arguments
The following is the argument in opposition to Proposition 22 found in the Official Voter Information Guide:[39]
|
Campaign finance
Protect App-Based Drivers And Services was organized as a political action committee (PAC) to support the ballot initiative. Protect App-Based Drivers And Services, along with allied committees, had raised $205.37 million.[29]
No on Prop 22 and No on 22 were organized as a political action committees (PACs) to oppose the ballot initiative. The PACs had raised $18.88 million.[29]
Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
---|---|---|---|---|---|
Support | $192,751,158.52 | $12,618,090.66 | $205,369,249.18 | $191,604,688.54 | $204,222,779.20 |
Oppose | $17,011,408.63 | $1,872,359.76 | $18,883,768.39 | $16,969,817.83 | $18,842,177.59 |
Total | $209,762,567.15 | $14,490,450.42 | $224,253,017.57 | $208,574,506.37 | $223,064,956.79 |
Support
The following table includes contribution and expenditure totals for the committees in support of the initiative.[29]
Committees in support of Proposition 22 | |||||
---|---|---|---|---|---|
Committee | Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures |
Yes on 22 - Save App-based Jobs & Services | $192,750,002.00 | $12,615,281.05 | $205,365,283.05 | $191,604,130.42 | $204,219,411.47 |
Californians for Innovation and Opportunity | $0.00 | $2,809.61 | $2,809.61 | $0.00 | $2,809.61 |
Let Us Work, Assemblyman Kevin Kiley's Ballot Measure Committee to Repeal AB 5 and Restore the Right to Earn a Living | $1,025.00 | $0.00 | $1,025.00 | $315.63 | $315.63 |
Californians to Protect Worker Independence and Consumer Choice | $131.52 | $0.00 | $131.52 | $242.49 | $242.49 |
Total | $192,751,158.52 | $12,618,090.66 | $205,369,249.18 | $191,604,688.54 | $204,222,779.20 |
Donors
The following were the top five donors who contributed to the support committees.[29]
Donor | Cash Contributions | In-Kind Contributions | Total Contributions |
---|---|---|---|
Uber Technologies, Inc. | $51,250,000.00 | $8,282,466.24 | $59,532,466.24 |
DoorDash, Inc. | $51,250,000.00 | $820,515.82 | $52,070,515.82 |
Lyft, Inc. | $47,500,000.00 | $1,462,682.46 | $48,962,682.46 |
Maplebear Inc., DBA InstaCart | $31,250,000.00 | $345,580.28 | $31,595,580.28 |
Postmates Inc. | $11,500,000.00 | $1,831,768.85 | $13,331,768.85 |
Opposition
The following table includes contribution and expenditure totals for the committees in opposition to the initiative.[29]
Committees in opposition to Proposition 22 | |||||
---|---|---|---|---|---|
Committee | Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures |
No on Prop 22 | $17,011,319.74 | $1,871,409.76 | $18,882,729.50 | $16,969,817.83 | $18,841,227.59 |
No on 22, a Coalition of Economic and Social Justice Nonprofits Dedicated to Workers' Rights | $88.89 | $950.00 | $1,038.89 | $0.00 | $950.00 |
Total | $17,011,408.63 | $1,872,359.76 | $18,883,768.39 | $16,969,817.83 | $18,842,177.59 |
Donors
The following were the top five donors who contributed to the opposition committees.[29]
Donor | Cash Contributions | In-Kind Contributions | Total Contributions |
---|---|---|---|
Service Employees International Union Local 721 CTW, CLC Issues & Initiatives | $400,000.00 | $1,127,367.55 | $1,527,367.55 |
Service Employees International Union Local 1021 | $1,074,467.00 | $0.00 | $1,074,467.00 |
International Brotherhood of Teamsters | $1,000,000.00 | $0.00 | $1,000,000.00 |
SEIU-UHW West | $1,000,000.00 | $0.00 | $1,000,000.00 |
United Food & Commercial Workers Local 770 | $1,000,000.00 | $0.00 | $1,000,000.00 |
United Food and Commercial Workers International Union CLC | $1,000,000.00 | $0.00 | $1,000,000.00 |
Media editorials
Ballotpedia identified the following media editorial boards as taking positions on the ballot initiative. If you are aware of a media editorial board position that is not listed below, please email the editorial link to editor@ballotpedia.org.
Support
Opposition
Polls
- See also: 2020 ballot measure polls
California Proposition 22, App-Based Drivers as Contractors and Labor Policies Initiative (2020) | |||||||||||||||||||
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Poll | Support | Oppose | Undecided | Margin of error | Sample size | ||||||||||||||
Berkeley IGS Poll (likely voters) 10/16/2020 - 10/21/2020 | 46.0% | 42.0% | 12.0% | +/-2.0 | 5,352 | ||||||||||||||
SurveyUSA (likely voters) 9/26/2020 - 9/28/2020 | 45.0% | 31.0% | 25.0% | +/-5.4 | 588 | ||||||||||||||
Berkeley IGS Poll (likely voters) 9/9/2020 - 9/15/2020 | 39.0% | 36.0% | 25.0% | +/-2.0 | 5,942 | ||||||||||||||
AVERAGES | 43.33% | 36.33% | 20.67% | +/-3.13 | 3,960.67 | ||||||||||||||
Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to editor@ballotpedia.org. |
Background
Comparison of most expensive ballot measures
Based on available reports on Cal-Access, which provides information on campaign finance from 1999 to present, the most expensive ballot measures in California were Proposition 26 and Proposition 27—measures related to in-person and mobile sports betting on the ballot in 2022. The campaigns surrounding the measures reported $463.3 million.[29]
Before Propositions 26 and 27, campaigns surrounding Proposition 22, a 2020 measure related to app-based drivers and labor regulations, raised a combined total of $224.2 million.
The following table illustrates the top nine most expensive ballot measures in California since 1999.
Top nine most expensive California ballot measures since 1999 | |||||
---|---|---|---|---|---|
Measure | Year | Total | Support | Opposition | Outcome |
Propositions 26 and 27 | 2022 | $463,378,417 | $301,387,802[40] | $161,990,615 | ![]() |
Proposition 22 | 2020 | $224,253,017 | $205,369,249 | $18,883,768 | ![]() |
Proposition 33 | 2024 | $175,776,441 | $50,713,045 | $125,063,395 | ![]() |
Propositions 94, 95, 96, and 97 | 2008 | $154,554,073 | $115,063,876 | $39,490,197 | ![]() |
Proposition 87 | 2006 | $150,770,683 | $58,130,783 | $92,639,900 | ![]() |
Proposition 15 | 2020 | $144,006,081 | $69,208,909 | $74,735,622 | ![]() |
Proposition 8 | 2018 | $130,426,208 | $18,943,228 | $111,482,980 | ![]() |
Proposition 61 | 2016 | $128,276,770 | $19,170,610 | $109,106,160 | ![]() |
Proposition 21 | 2020 | $124,424,014 | $40,852,357 | $83,571,657 | ![]() |
Proposition 79 | 2005 | $121,826,243 | $40,516,352 | $81,309,891 | ![]() |
Assembly Bill 5 (2019)
- See also: California Assembly Bill 5 (2019)
Gov. Gavin Newsom (D) signed Assembly Bill 5 (AB 5) on September 18, 2019. AB 5 passed the California State Senate in a vote of 29 to 11 on September 10. Senate Democrats supported the legislation, and Senate Republicans opposed the legislation. AB 5 passed the California State Assembly in a vote of 61 to 16 on September 11. Sixty Assembly Democrats, along with one Republican, voted for AB 5. Fifteen Assembly Republicans, along with one Democrat, voted against AB 5.[16]
Assembly Bill 5 (AB 5), like Dynamex, created the presumption that a worker is an employee, rather than an independent contractor, unless the hiring business can prove each part (A, B, and C) of the ABC test. AB 5 used the same language as Dynamex to define the ABC test. In AB 5, the exact language of the ABC test is as follows:[16]
“ |
(A) The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact. (B) The person performs work that is outside the usual course of the hiring entity’s business. (C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.[33] |
” |
In Dynamex, the ABC test was used to decide whether a worker was entitled to benefits and regulations found in the California Wage Orders. AB 5 also established that the ABC test applied to additional laws, along with the California Wage Orders, found in the California Labor Code and California Unemployment Insurance Code.[16]
Olson v. California
- See also: Olson v. California
Lydia Olson et al. v. State of California is a case before the U.S. District Court for the Central District of California that addresses whether Assembly Bill 5 (AB 5) violates the rights of Postmates, Inc., and Uber Technologies, Inc., along with two individuals (Lydia Olson and Miguel Perez) who were named as app-based workers, under the U.S. Constitution and California Constitution. Plaintiffs described AB 5 as "an irrational and unconstitutional statute designed to target and stifle workers and companies in the on-demand economy."[41]
The State of California and Attorney General Xavier Becerra (D), who is responsible for enforcing AB 5, were named as the defendants in the case.[42] Attorney General Xavier Becerra stated, "At heart, Plaintiffs question the wisdom and effectiveness of AB 5, but that is a legislative policy determination, not viable grounds for a constitutional challenge."[43]
The legal complaint was filed on December 30, 2019. Plaintiffs asked for an injunction on AB 5, pending the court's final judgment. On February 10, 2020, Judge Dolly Gee rejected the request for an injunction on AB 5 while the case is ongoing.[44]
California v. Uber and Lyft
- See also: California v. Uber and Lyft
People of the State of California v. Uber Technologies, Inc. and Lyft, Inc. is a case before the California First District Court of Appeal that addresses whether Uber Technologies, Inc. and Lyft, Inc. misclassified their workers as independent contractors instead of employees. The case began in the Superior Court of San Francisco.[45]
California Attorney General Xavier Becerra, Los Angeles City Attorney Mike Feuer, San Diego City Attorney Mara Elliott, and San Francisco City Attorney Dennis Herrera initiated the case against Uber and Lyft on May 5, 2020. Plaintiffs wrote, "The time has come for Uber’s and Lyft’s massive, unlawful employee misclassification schemes to end. The People bring this action to ensure that Uber and Lyft ridehailing drivers—the lifeblood of these companies—receive the full compensation, protections, and benefits they are guaranteed under law, to restore a level playing field for competing businesses, and to preserve jobs and hard-won worker protections for all Californians."[45]
On August 10, 2020, Judge Ethan Schulman granted an injunction in favor of California, stating that, "It also flies in the face of economic reality and common sense. ... To state the obvious, drivers are central, not tangential, to Uber and Lyft’s entire ride-hailing business."[46]
On August 20, the California First District Court of Appeal stayed Judge Schulman's injunction from taking effect. Instead, the Court of Appeal gave Uber and Lyft until August 25 to file written consents to expedited procedures. Uber and Lyft had until September 4, 2020, to file opening briefs, as well as sworn statements from their CEOs confirming that the companies have developed implementation plans should the Court of Appeal uphold the injunction and should voters reject Proposition 22. The Court of Appeal scheduled oral arguments for October 13, 2020.[47]
On October 22, 2020, First District Court of Appeal upheld the lower court's order, stating that Uber and Lyft had 30 days to reclassify drivers as employees. A spokesperson for Uber responded, "Today’s ruling means that if the voters don’t say Yes on Proposition 22, rideshare drivers will be prevented from continuing to work as independent contractors, putting hundreds of thousands of Californians out of work and likely shutting down ridesharing throughout much of the state."[48]
Both Uber CEO Dara Khosrowshahi and Lyft President John Zimmer said that their companies could suspend rideshare operations in California. Lawyers for Uber wrote that a shutdown could last for several months to more than a year.[49] Judge Schulman gave Uber and Lyft until August 20, 2020, to be in compliance with the injunction. On August 20, the California First District Court of Appeal stayed Judge Schulman's decision.[50]
- Uber CEO Dara Khosrowshahi said, "We think we comply by the laws, but if the judge and the court find that we’re not and don’t give us a stay to get to November, then we’ll have to essentially shut down Uber until November when the voters decide. It would be really unfortunate, at a historical time of unemployment in California."[51] Khosrowshahi told Vox, "Hopefully, in November, Proposition 22, we will get voters to vote along."[52] Uber, in the filing of an appeal, stated that "the consequences to drivers and the public from the impending shutdown will be catastrophic."[53]
- Lyft President John Zimmer said that Lyft "cannot comply with the injunction at a flip of the switch" and would be "forced to suspend rideshare operations in California."[54] Zimmer also said, "Fortunately, California voters can make their voices heard by voting yes on Prop. 22 in November."[55]
- Asm. Lorena Gonzalez Fletcher (D-80), the lead legislative sponsor of AB 5, responded on Twitter, "What if [Amazon] threatened to stop doing business in California if we didn’t allow them to pay their warehouse workers less than minimum wage [and] exempt them from paying unemployment, etc. What if it was your employer? That’s the precedent [Uber] is trying to create."[56]
Austin, Texas, Proposition 1 (2016)
On December 18, 2015, the Austin City Council passed an ordinance to regulate transportation network companies (TNCs), also known as rideshare companies. The ordinance was designed to require rideshare drivers to receive fingerprint-based background checks.[57] The campaign Ridesharing Works for Austin was launched to repeal and replace the ordinance with Proposition 1. Uber and Lyft funded Ridesharing Works for Austin, which received $10.32 million from the rideshare companies. Uber provided $7.64 million, and Lyft provided $2.67 million. Ben Wear, a reporter for the Austin American-Statesman, wrote that Proposition 1 had "the most expensive campaign in city history."[58]
Proposition 1 would have repealed the ordinance and instead required rideshare companies to conduct background checks on drivers through third parties. Under Proposition 1, the background checks did not need to be fingerprint-based. Proposition 1 would have repealed other requirements, including a requirement that the company's emblem be displayed on driver's vehicles and a ban on stopping, parking, and loading or unloading passengers in a travel lane or at a designated bus stop.[59]
After Proposition 1 was defeated on May 7, 2016, Uber and Lyft suspended rideshare operations in Austin, Texas. Both Uber and Lyft stated that their companies had about 10,000 drivers in Austin, Texas, prior to the suspension.[60]
Uber and Lyft resumed rideshare operations in Austin on May 29, 2017, after Gov. Greg Abbott (R) signed a law that preempted Austin's ordinance. Gov. Abbott said, "This is freedom for every Texan — especially those who live in the Austin area — to be able to choose the provider of their choice as it concerns transportation."[61]
Path to the ballot
Process in California
In California, the number of signatures required for an initiated state statute is equal to 5 percent of the votes cast in the preceding gubernatorial election. Petitions are allowed to circulate for 180 days from the date the attorney general prepares the petition language. Signatures need to be certified at least 131 days before the general election. As the verification process can take multiple months, the secretary of state provides suggested deadlines for ballot initiatives.
The requirements to get initiated state statutes certified for the 2020 ballot:
- Signatures: 623,212 valid signatures were required.
- Deadline: The deadline for signature verification was June 25, 2020. However, the process of verifying signatures can take multiple months. The recommended deadlines were March 3, 2020, for an initiative requiring a full check of signatures and April 21, 2020, for an initiative requiring a random sample of signatures.
Signatures are first filed with local election officials, who determine the total number of signatures submitted. If the total number is equal to at least 100 percent of the required signatures, then local election officials perform a random check of signatures submitted in their counties. If the random sample estimates that more than 110 percent of the required number of signatures are valid, the initiative is eligible for the ballot. If the random sample estimates that between 95 and 110 percent of the required number of signatures are valid, a full check of signatures is done to determine the total number of valid signatures. If less than 95 percent are estimated to be valid, the initiative does not make the ballot.
Stages of this initiative
On October 29, 2019, three persons—Davis White of Uber, Brian McGuigan of Lyft, and Keith Yandell of DoorDash—filed the ballot initiative. Attorney General Xavier Becerra (D) released petition language for the initiative on January 2, 2020, which allowed proponents to begin collecting signatures.[62] The deadline to file signatures was June 30, 2020.
On January 30, 2020, proponents announced that the number of collected signatures surpassed the 25-percent threshold (155,803 signatures) to require legislative hearings on the ballot initiative.[63] In 2014, Senate Bill 1253 was enacted into law, which required the legislature to assign ballot initiatives that meet the 25-percent threshold to committees to hold joint public hearings on the initiatives not later than 131 days before the election.
On February 27, 2020, the campaign Protect App-Based Drivers and Services announced that 1 million signatures had been collected during a seven-week period.[64] On March 27, the campaign began filing a total of 987,813 signatures for the ballot initiative. At least 623,212 (63.09 percent) of the signatures needed to be valid.[65]
On May 22, 2020, the office of Secretary of State Alex Padilla announced that a random sample of signatures projected that 77.50 percent were valid. Therefore, the ballot initiative qualified to appear on the ballot at the general election.[66]
Cost of signature collection:
Sponsors of the measure hired National Petition Management, Inc. to collect signatures for the petition to qualify this measure for the ballot. A total of $6,461,617.23 was spent to collect the 623,212 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $10.37.
White v. Padilla
Lawsuit overview | |
Issue: Is the ballot title for Proposition 22 false, misleading, and prejudice? | |
Court: California Third District Court of Appeal (Appealed from the Sacramento County Superior Court) | |
Ruling: Sacramento County Superior Court ruled in favor of Padilla and Becerra, stating that the ballot title is not false, misleading, or inaccurate. | |
Plaintiff(s): Davis White | Defendant(s): Secretary of State Alex Padilla and Attorney General Xavier Becerra |
Source: California Third District Court of Appeal
On July 29, 2020, Davis White, Uber's Director of California Public Affairs, sued Secretary of State Alex Padilla in the Sacramento County Superior Court. White argued that the ballot language for Proposition 22, as drafted by Attorney General Xavier Becerra (D), was false, misleading, and prejudice. White stated, "Only after very publicly taking sides against Proposition 22 has the Attorney General sought to perpetrate a falsehood that Proposition 22 is an entirely different measure which instead 'exempts appbased transportation and delivery companies from providing employee benefits.' This new posture overflows with well-documented bias and prejudice, misrepresents the actual text of the initiative, and is politically designed to defeat Proposition 22." White asked the court to replace the ballot title with the title that was used on petitions or amend the ballot title.[67]
Judge Laurie Earl ruled in favor of Padilla and Becerra, writing, "Read as a whole, this is not false, misleading, or inaccurate, and the use of the word ‘exempt’ in the ballot title does not make it so."[68]
On August 6, 2020, the campaign announced that White appealed the superior court's ruling to the California Third District Court of Appeal.[69]
How to cast a vote
- See also: Voting in California
Click "Show" to learn more about voter registration, identification requirements, and poll times in California.
How to cast a vote in California | |||||
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Poll timesAll polls in California are open from 7:00 a.m. to 8:00 p.m. Pacific Time. An individual who is in line at the time polls close must be allowed to vote.[70] Registration
To vote in California, an individual must be a U.S. citizen and California resident. A voter must be at least 18 years of age on Election Day. Pre-registration is available at 16 years of age. Pre-registered voters are automatically registered to vote when they turn 18.[71] Automatic registrationCalifornia automatically registers eligible individuals to vote when they complete a driver's license, identification (ID) card, or change of address transaction through the Department of Motor Vehicles. Learn more by visiting this website. Online registration
California has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registrationCalifornia allows same-day voter registration. Californians must be registered to vote at least 15 days before Election Day. If the registration deadline has passed for an upcoming election, voters may visit a location designated by their county elections official during the 14 days prior to, and including Election Day to conditionally register to vote and vote a provisional ballot, which are counted once county election officials have completed the voter registration verification process. The state refers to this process as Same Day Voter Registration.[72][73] Residency requirementsTo register to vote in California, you must be a resident of the state. State law does not specify a length of time for which you must have been a resident to be eligible. Verification of citizenshipCalifornia's constitution requires that voters be U.S. citizens. When registering to vote, proof of citizenship is not required. Individuals who become U.S. citizens less than 15 days before an election must bring proof of citizenship to their county elections office to register to vote in that election. An individual applying to register to vote must attest that they are a U.S. citizen under penalty of perjury.[72] As of November 2024, two jurisdictions in California had authorized noncitizen residents to vote for local board of education positions through local ballot measures. Only one of those jurisdictions, San Francisco, had implemented that law. Noncitizens voting for board of education positions must register to vote using a separate application from the state voter registration application.[74] All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment.[75] Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters. Verifying your registrationThe secretary of state's My Voter Status website allows residents to check their voter registration status online. Voter ID requirementsCalifornia does not require voters to present identification before casting a ballot in most cases. However, some voters may be asked to show a form of identification when voting if they are voting for the first time after registering to vote by mail and did not provide a driver license number, California identification number, or the last four digits of their social security number.[76][77] On September 29, 2024, Gov. Gavin Newsom (D) signed SB 1174 into law prohibiting any jurisdiction in the state from adopting a local law that requires voters to present ID before voting.[78] The following list of accepted ID was current as of October 2024. Click here for the California Secretary of State page to ensure you have the most current information.
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See also
External links
Information
Support
- Yes on 22 - Save App-based Jobs & Services
- Yes on 22 - Save App-based Jobs & Services Facebook
- Yes on 22 - Save App-based Jobs & Services Twitter
Opposition
Footnotes
- ↑ TechCrunch, "After Prop 22’s passage, Uber is taking its lobbying effort global," November 5, 2020
- ↑ Vice, "Uber Wants to Expand Its Anti-Worker Proposition 22 Beyond California," November 9, 2020
- ↑ The Washington Post, "California voters sided with Uber, denying drivers benefits by classifying them as contractors," November 4, 2020
- ↑ New York Times, "Other States Should Worry About What Happened in California," November 6, 2020
- ↑ OneZero, "‘Those in Power Won’t Give Up Willingly’: Veena Dubal and Meredith Whittaker on the Future of Organizing Under Prop 22," November 10, 2020
- ↑ 6.0 6.1 California Supreme Court, "Castellanos v. California," January 12, 2021
- ↑ ABC News, "Some Uber, Lyft drivers sue over California ballot measure," January 12, 2021
- ↑ Los Angeles Times, "Prop. 22 faces first legal challenge as SEIU, ride-hail drivers file suit," January 12, 2021
- ↑ Antelope Valley Press, "State court rejects lawsuit challenging ride-share vote," February 3, 2021
- ↑ Superior Court of the State of California in and for the County of Alameda, "Castellanos order," accessed August 20, 2021
- ↑ Bloomberg Law, "Gig Workers, Prop. 22 Backers Resume War Over Initiative’s Fate," December 12, 2022
- ↑ LA Times, "California appeals court reverses most of ruling deeming Prop. 22 invalid," March 13, 2023
- ↑ Sacramento Bee, "California Supreme Court taking up Proposition 22 challenge from gig drivers, labor unions," accessed June 29, 2023
- ↑ Yahoo Finance, "California top court upholds ballot measure treating Uber, Lyft drivers as independent contractors," July 25, 2024
- ↑ 15.0 15.1 15.2 15.3 15.4 15.5 15.6 California Attorney General, "Initiative 19-0026," October 29, 2019
- ↑ 16.0 16.1 16.2 16.3 California State Legislature, "Assembly Bill 5," accessed October 29, 2019 Cite error: Invalid
<ref>
tag; name "ab5" defined multiple times with different content Cite error: Invalid<ref>
tag; name "ab5" defined multiple times with different content - ↑ Uber, "Update on AB5," September 11, 2019
- ↑ Wired, "Uber and Lyft Fight a Law They Say Doesn't Apply to Them," October 31, 2019
- ↑ Financial Times, "Uber and Lyft’s California operations hang in balance," August 17, 2020
- ↑ Business Insider, "Lyft's president threatened to shut down California operations over a court ruling requiring the company to reclassify drivers as employees," August 12, 2020
- ↑ Fortune, "Will Uber and Lyft shut down in California?" August 18, 2020
- ↑ Los Angeles Times, "Uber seeks court reprieve after California shutdown threat," August 17, 2020
- ↑ Appellate Courts Case Information, "State of California v. Uber Technologies, Inc. et al.," accessed August 20, 2020
- ↑ New York Times, "Appeals Court Says Uber and Lyft Must Treat California Drivers as Employees," October 22, 2020
- ↑ CNBC, "Uber and Lyft pledge $60 million to ballot measure in fight to keep drivers’ classification as contractors," August 29, 2019
- ↑ Bloomberg, "Uber, Lyft, DoorDash Put $90 Million to Possible Ballot War," August 29, 2019
- ↑ Los Angeles Times, "Uber, Lyft warn they’ll take the fight over drivers’ status to California voters," August 29, 2019
- ↑ KCRA, "Ride-share drivers ask California voters to block employee law," October 29, 2019
- ↑ 29.0 29.1 29.2 29.3 29.4 29.5 29.6 29.7 Cal-Access, "Homepage," accessed November 3, 2019 Cite error: Invalid
<ref>
tag; name "finance" defined multiple times with different content - ↑ Politico, "California gig war intensifies as Uber, Lyft could pull rideshare in hardball fight," August 19, 2020
- ↑ Partnership for Working Families, "Rigging the Gig," July 7, 2020
- ↑ 32.0 32.1 32.2 California Secretary of State, "Ballot Title and Summary," accessed July 28, 2020
- ↑ 33.0 33.1 33.2 33.3 33.4 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ Protect App-Based Drivers & Services, "Support the Protect App-Based Drivers & Services Act," accessed October 30, 2019
- ↑ Save App-Based Jobs & Services, "Coalition," accessed July 21, 2020
- ↑ California Secretary of State, "Official Voter Information Guide," accessed September 28, 2020
- ↑ Cal-Access, "Coalition to Protect Riders and Drivers Statement of Organization," January 28, 2020
- ↑ No on Prop 22, "Homepage," accessed July 21, 2020
- ↑ California Secretary of State, "Official Voter Information Guide," accessed September 28, 2020
- ↑ One committee—Yes on 26, No on 27: Coalition for Safe, Responsible Gaming—was registered in support of Proposition 26 and opposition to Proposition 27. The contribution total does not disambiguate between support and opposition contributions, so it is included in the support total.
- ↑ CNBC, "Uber, Postmates and two drivers sue California over law that would reclassify contractors as employees," December 30, 2020
- ↑ U.S. District Court for the Central District of California, "Lydia Olson et al. v. State of California," December 30, 2019
- ↑ ''U.S. District Court for the Central District of California, "Lydia Olson et al. v. State of California," January 17, 2020
- ↑ New York Times, "Judge Refuses to Block California’s Gig Worker Law During Suit," February 10, 2020
- ↑ 45.0 45.1 California Attorney General, "California v. Uber and Lyft," May 5, 2020
- ↑ Superior Court of San Francisco, "California v. Uber and Lyft," August 10, 2020
- ↑ Appellate Courts Case Information, "State of California v. Uber Technologies, Inc. et al.," accessed August 20, 2020
- ↑ The Verge, "Uber and Lyft lose appeal, ordered again to classify drivers as employees," October 22, 2020
- ↑ Superior Court of San Francisco, "California v. Uber and Lyft," August 13, 2020
- ↑ Reuters, "California court ruling gives voters last word over Uber, Lyft worker rights," August 20, 2020
- ↑ Twitter, "MSNBC, August 12, 2020
- ↑ Politico, "California gig war intensifies as Uber, Lyft could pull rideshare in hardball fight," August 19, 2020
- ↑ Los Angeles Times, "Uber seeks court reprieve after California shutdown threat," August 17, 2020
- ↑ CNN, "Uber and Lyft could shut down in California this week. It may not help their cause," August 16, 2020
- ↑ Los Angeles Times, "Uber and Lyft may shut down this week in California. Here’s what you should know," August 19, 2020
- ↑ Twitter, "Lorena Gonzalez Fletcher," August 14, 2020
- ↑ The Texas Tribune, "With New Rules, Will Uber, Lyft Stay in Austin?" December 17, 2015
- ↑ Austin American-Statesman, "Prop. 1 goes down as activist proclaims: ‘Austin made Uber an example’," May 19, 2017
- ↑ Austin City Council, "Ordinance No. 20160217-001," accessed August 19, 2020
- ↑ Tech Crunch, "Uber and Lyft ‘pause’ Austin operations today in standoff over regulation," May 9, 2016
- ↑ 'The Texas Tribune, "Uber, Lyft return to Austin as Texas Gov. Abbott signs ride-hailing measure into law," May 29, 2017
- ↑ California Secretary of State, "Initiative and Referendum Qualification Status," accessed October 30, 2019
- ↑ California Secretary of State, "Proponent Letter of 25% of Signatures Reached," January 30, 2020
- ↑ San Francisco Chronicle, "Uber, Lyft, DoorDash campaign for California gig law exemption has 1 million signatures," February 27, 2020
- ↑ San Francisco Business Times, "Coalition fighting AB-5 submits signatures for ballot measure," March 27, 2020
- ↑ California Secretary of State, "Final Random Sample," May 22, 2020
- ↑ Sacramento County Superior Court, "White v. Padilla," July 29, 2020
- ↑ San Francisco Chronicle, "Judge rejects Prop. 22 backers’ attempt to change gig-work ballot language," August 4, 2020
- ↑ California Third District Court of Appeal, "White v. Padilla," August 6, 2020
- ↑ California Secretary of State, "Section 3: Polling Place Hours," accessed August 12, 2024
- ↑ California Secretary of State, "Voter Registration," accessed August 13, 2024
- ↑ 72.0 72.1 California Secretary of State, "Registering to Vote," accessed August 13, 2024
- ↑ California Secretary of State, "Same Day Voter Registration (Conditional Voter Registration)," accessed August 13, 2024
- ↑ SF.gov, "Non-citizen voting rights in local Board of Education elections," accessed November 14, 2024
- ↑ Under federal law, the national mail voter registration application (a version of which is in use in all states with voter registration systems) requires applicants to indicate that they are U.S. citizens in order to complete an application to vote in state or federal elections, but does not require voters to provide documentary proof of citizenship. According to the U.S. Department of Justice, the application "may require only the minimum amount of information necessary to prevent duplicate voter registrations and permit State officials both to determine the eligibility of the applicant to vote and to administer the voting process."
- ↑ California Secretary of State, "What to Bring to Your Polling Place," accessed August 12, 2024
- ↑ BARCLAYS OFFICIAL CALIFORNIA CODE OF REGULATIONS, "Section 20107," accessed August 12, 2024
- ↑ Democracy Docket, "California Governor Signs Law to Ban Local Voter ID Requirements," September 30, 2024
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