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Proposition 22, also known as the App-Based Drivers as Contractors and Labor Policies Initiative will be on the California ballot for November’s election.

About Proposition 22

California Proposition 22 is proposed legislation that would define people who drive for Lyft, Uber or other app-based platforms as independent contractors instead of employees. It specifies that app-based drivers:
• Provide on-demand delivery services via an online-enabled application or platform or;
• Use a personal vehicle to provide prearranged transportation services for compensation via an online-enabled application or platform.

In addition to the classification, Proposition 22 would create new labor and wage policies for app-based drivers, including:
• Drivers would be limited to working no more than 12 hours during a 24-hour period, unless they have been off-duty (logged out of the app) for 6 consecutive hours.
• Drivers who work 25 hours a week would be eligible for healthcare subsidies equal to 82% of the average California Covered premium for each month.
• Drivers who work 15 to 25 hours a week would be eligible for healthcare subsidies equal to 41% of the average California Covered premium for each month.
• Businesses that utilize contractors would be required 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.

Assembly Bill 5

If Proposition 22 is passed, it would override California Assembly Bill 5 (AB5), which went into effect on January 1, 2020. AB5 updated the “ABC Test” that can be used to determine if a worker is defined as an employee or contractor. Following the passage of AB5, many app-based drivers that had been independent contractors were to be reclassified as employees.

There was an initiative to overturn AB5. It was sponsored by rideshare businesses such as Lyft, Uber and DoorDash. Those who supported this effort believed it was unfair to force employers to define app-based drivers as employees. They also felt it was unfair to workers who wanted the freedoms and flexible schedules that can be allotted to contractors.

Support For Proposition 22

A website called Yes on 22 was created to promote and help pass the Proposition. It states that thousands of Californians choose to work as independent contractors and want to be classified as such. The site notes that AB5 could be responsible for eliminating thousands of jobs and “threatening the availability of rideshare and food delivery services.”

In August, 2020, Uber and Lyft announced they would be forced to suspend operations in California. Both noted they were unable to update their business model to comply with AB5. They requested an emergency stay against a court order that would require them to reclassify all drivers as employees. It was granted and they have continued to operate in the golden state.

Uber, Lyft, DoorDash, Postmates and similar businesses are encouraging Californians to vote in favor of Proposition 22.

Background Checks For Employees And Contractors

If you’re bringing on employees or contractors, then running background checks remains an essential part of the due diligence process. These reports provide data employer use to create safe work environments, protect the public and identify quality hires.

The team at Backgrounds Online can help your organization customize background check packages that are ideal for any position. Contact us for expert assistance and solutions to all of your screening needs. We’re available to assist you Monday through Friday from 5am to 6pm PT.