California’s Prop 22 Passage Allows Tech-Based Companies to Classify Drivers as Contractors

Updates

November 04, 2020

California’s Prop 22 Passage Allows Tech-Based Companies to Classify Drivers as Contractors

On Election Day 2020, California voters approved Proposition 22 which allows some gig economy companies to continue to classify drivers as independent contractors. These app-based drivers also will be guaranteed minimum earnings, healthcare subsidies, and vehicle insurance, and entitled to anti-discrimination and sexual harassment protections. The full text of the proposition is available here. The passage of Proposition 22 adds yet another exemption to the ABC test for independent contractors in California. The most recent changes to California's ABC test are described here. Companies utilizing independent contractors in California should consult local legal counsel to make sure they are current on the latest developments in this ever-evolving area of the law.