California Voters Override AB 5 for App-Based Drivers and Services Through Passing of Proposition 22

California Voters Override AB 5 for App-Based Drivers and Services Through Passing of Proposition 22

On November 3, 2020, Californian voters approved Proposition 22 – a ballot measure that defines app-based transportation and delivery drivers as independent contractors and that additionally adopts labor and wage policies specific to app-based drivers and companies. This ballot measure overrode the AB 5 analysis, which was signed into law in September 2019, for app-based drivers only. App-based drivers are defined as workers who (1) provide delivery services on an on-demand basis through a business’s online-enabled application or platform; or (2) use a personal vehicle to provide prearranged transportation services for compensation via a business’s online-enabled application or platform. As independent contractors, app-based drivers are not eligible for general protections afforded employees – such as minimum wage, overtime, and/or meal and rest breaks.