Bloomberg Businessweek - USA (2020-11-02)

T E C H N O L O G Y

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18

Edited by

Sarah McGregor

app-based companies from California’s new gig

economy law, which makes it tougher for compa-

nies to classify workers as contractors rather than

employees. If voters reject the proposition, the

companies would have to start treating drivers as

staff who are eligible for benefits such as guaran-

teed minimum wages, paid sick days, and other

standard protections.

Ride-hailing apps Uber and Lyft and food deliv-

ery services DoorDash, Instacart, and Postmates

sponsored the initiative, pouring a record

$200 million into the campaign to convince vot-

ers that app-based drivers want to preserve their

The gig economy is preparing for a reckoning.

California voters are set to pick sides during the

Nov. 3 elections in one of the most fraught debates

of today’s labor market: Are flexible working

arrangements worth the trade-offs of weaker job

security and fewer benefits? A state ballot mea-

sure, known as Proposition 22, would exclude

● App companies want

Californians to enshrine their

drivers’ contractor status

Gig Economy—

Yes or No?