Uber Technologies Inc., Lyft Inc., according to the Associated Press race call. And DoorDash Inc. Won a resounding vote in California, allowing them to reappoint their drivers as employees.
The companies, along with Postmates Inc. and Instacart Inc., collectively contributed nearly $ 200 million to support Proposition 22, a measure intended to provide them with employee-equal protection for their drivers, bypassing a state law allows for. The campaign was the most expensive for any voting measure in the state’s history. With ballots counting over 60%, the vote was running 58% in favor of the measure and 42% against, prompting the Associated Press to project.
The result is a setback for the state government, which is embroiled in a high-stakes battle with companies over redevelopment. A law passed last year sought to force ride-share and food-delivery companies to reclassify their drivers as employees, to be eligible for benefits such as minimum wages, sick leave and unemployment assistance.
To keep labor costs down the business models of app companies rely on “gig workers”, who are trusted contractors.
After the law came into force on January 1, none of the companies reclassified workers. 1. Instead, they combined forces to jointly support ballots. In May the state filed a lawsuit, enforcing the litigation, which would be affected by the successful election result.