California voters approved a ballot measure that allows
Uber, Lyft and other ride-hailing services to designate drivers as contractors,
not employees.
The state's Proposition 22 specifies "app-based
drivers" as contractors, exempting Uber and Lyft from a State Assembly
bill passed last year that defines who companies can classify as independent
contractors. A
Superior Court ruling this summer had said rideshare drivers did not meet
those criteria and were entitled to benefits and rights afforded employees.
Uber, Lyft and other app-based companies with drivers had
campaigned heavily for the measure, spending more than $205 million in support
of it, according to the San Francisco Chronicle. The measure also specifies
certain wage and labor policies for drivers, including a minimum earnings
guarantee and subsidies for healthcare depending on the number of hours a
driver works.