A Lyft spokesperson told Flexible Work News on June 11 that if California’s Proposition (Prop) 22 is struck down, rideshare drivers would lose flexibility and other benefits, while riders could face more expensive fares.
"Prop. 22 protects the independence that drivers value and gives them benefits such as an earnings guarantee, access to a health care stipend, and more," said the spokesperson. "The Court of Appeal's decision to uphold Prop. 22 was the right one, and consistent with long-standing legal precedent upholding the voters' initiative power. If Prop. 22 is struck down, drivers could lose access to flexible earning opportunities and millions of Californians could face difficulties finding affordable transportation."
Prop 22 was approved by California voters in 2020, enabling app-based drivers and delivery workers to be classified as independent contractors rather than employees, CalMatters reported. A Superior Court judge ruled that the measure was unconstitutional, but it was then upheld by an appeals court. The state’s Supreme Court agreed to consider the measure, and after hearing oral arguments in the case on May 22, the justices seemed inclined to uphold Prop 22. Rideshare drivers who spoke in support of Prop 22 said they value its guaranteed earnings provisions, as well as the flexibility they get from being independent contractors. The justices have 90 days to reach a decision.
According to an amicus brief submitted in April by Chamber of Progress, NetChoice, Asian Industry B2B, and several other industry associations, overturning Prop 22 would negatively affect women and communities of color. The organizations stated that when 58.6% of California voters approved the measure in 2020, its support was particularly strong among female, black, and Hispanic voters. Citing a Pew Research Center study which found that gig workers tend to be young, nonwhite, and lower-income, the organizations said that gig workers often "depend on the flexibility" to accommodate multiple jobs as well as other obligations "such as caregiving duties and educational pursuits."
A survey conducted among Californians who drive for Uber, Lyft, DoorDash, and Instacart in 2021 found that 88% of respondents said Prop 22 had been "good for them," with 76% saying it "increased my pay," according to a report from Protect App-Based Drivers and Services. Additionally, 84% of survey respondents said they would recommend that other states pass laws similar to Prop 22.
According to a post on Uber’s website, Prop 22 "provides historic and important protections and guarantees to workers in California." Benefits for Uber drivers and couriers under Prop 22 include health care stipends for drivers who do not have access to health insurance plans, a minimum earnings guarantee of at least 120% of minimum wage plus $0.35 per mile, and occupational accident insurance.
Lyft is a ride-hailing service that launched in 2012. According to Investopedia, the platform operates across the U.S. and Canada.