What Does Prop 22 Really Mean For Independent Contractors and The Gig Economy?

DDI_What does prop 22 really mean

If you hadn’t heard, there has been a paradigm shift in the US workforce, keeping a whole sector of our economy in flux; the independent contractor. Becoming a 1099 or gig economy worker has taken the front seat as an exploding industry since the pandemic started and shown to be a viable and even dependable way of generating income and staying afloat when others are losing everything. 

However, by introducing laws that would force these hard-working individuals to be reclassified as W2 employees, California has taken a stance against independent contractors by introducing a bill late last year (AB5) that tightens the already stringent guidelines that determine what an independent contractor is. Under these guidelines, virtually ALL delivery drivers are required to reclassify as W2 employees. This has potential catastrophic effects on businesses with existing systems that are already in place and working for both their customers and independent contractors.

For this reason, every player in the gig economy like Uber, Lyft and Doordash has fought hard to stop this bill. California Attorney General, Xavier Becerra, attempted to force these companies to reclassify to a W2 model by using an executive order, even though many of these drivers have stated time and time again that they prefer to be independent contractors. Lyft had announced that August 21st it was going to stop all operations in California as a result of Xavier Becerra’s executive order. Luckily, California courts granted an emergency stay for Lyft and Uber, which stopped this reckless order from going into effect. What would happen if Proposition 22 failed? At minimum, the cost of goods delivered or ridesharing would increase dramatically, or worse, these companies would stop doing business in California completely, which means no more rideshare, no more food delivery, no more business delivery and no more same-day delivery.

What Proposition 22 really means for today’s gig economy 1099 worker:

  • KEEPING Flexible Work Hours
  • KEEPING Control Over Their Taxes
  • KEEPING Business Ownership And Its Perks
  • KEEPING Control Over Their Paycheck
  • KEEPING Freedom When Choosing Insurance

Proposition 22 was introduced in order to preserve all the benefits the independent contractor has come to rely on, and the website www.yeson22.com will allow you to read more about this incredibly important proposition.

As the gig economy continues to grow and the need for convenience, ease, contactless delivery, and safe interactions with each other remains in the forefront of our daily lives, keep in mind the things that are at risk. Proposition 22 will preserve these principles. Assembly Bill 5 will destroy them. Let’s hope the individuals who make our lives that much easier every day can continue to do so without having to worry about their income, their livelihood, and their careers being upended by poor legislative decisions.