Uber, Lyft, and DoorDash Fund Ballot Initiative to Protect Contractor Status
Major gig economy companies back a 2020 ballot measure to override California's AB-5 and keep drivers as independent contractors. The initiative offers new wage guarantees and benefits while maintaining flexible work schedules.
Uber, Lyft, and DoorDash back a new California ballot measure called the Protect App-Based Drivers & Services Act for the November 2020 election. This initiative directly counters AB-5, a state law that forces gig companies to classify their workers as employees rather than independent contractors. The gig giants argue that employee classification strips drivers of their flexible schedules and threatens hundreds of thousands of jobs.
To sway voters, the proposed measure includes significant concessions for gig workers. It guarantees an earnings floor of 120% of the minimum wage while active on the app, provides a 30-cent per mile expense allowance, and offers a healthcare stipend. The initiative also promises occupational accident insurance, liability coverage, and protections against discrimination and sexual harassment.
Despite these added benefits, some drivers and labor advocates criticize the campaign, arguing that the companies themselves dictate flexibility, not the state labor laws. Uber, Lyft, and DoorDash each commit $30 million to fund the initiative, with Uber signaling a willingness to spend even more to defend its business model. Instacart also supports the measure, though the grocery delivery company does not disclose its financial contribution to the coalition.