US

California’s Proposition 22 Is The Most Expensive Ballot Measure In State History. The Result Could Affect A Biden Presidency

Josh Edelson/AFP via Getty Images

Daily Caller News Foundation logo
Thomas Catenacci Energy & Environment Reporter
Font Size:
  • California’s ballot measure Proposition 22 would exempt app-based drivers, including Uber drivers, from the 2019 legislation Assembly Bill 5, which broadened the definition for who is an employee and has been criticized for unfairly targeting freelancers.
  • Uber, Lyft and Doordash have led the support for the measure and have contributed hundreds of millions of dollars into the effort making it the most expensive state measure in California history, according to Politico.
  • “They are trying to buy their own law, so they can keep exploiting their workers for profit,” Mike Roth, spokesperson for No On Prop. 22, told The Daily Caller News Foundation.

California’s ballot measure that would exempt gig companies from a recently-enacted labor law is the most expensive measure in state history and, depending on the result, could indicate how a Joe Biden administration would legislate.

If successful, Proposition 22 would exempt app-based drivers and workers from California’s Assembly Bill 5 (AB5) and classify them as freelancers, not employees, according to Ballotpedia. AB5 went into effect in January, months after Democratic Gov. Gavin Newsom signed it into law in September 2019, CNBC reported.

“Assembly Bill 5 is landmark legislation for workers and our economy,” Newsom said in a statement after he signed the bill. (RELATED: Man Punches Uber Driver Over Mask Policy)

“It will help reduce worker misclassification — workers being wrongly classified as ‘independent contractors,’ rather than employees, which erodes basic worker protections like the minimum wage, paid sick days and health insurance benefits,” he continued.

Democratic gubernatorial candidate Gavin Newsom speaks in 2018 in Los Angeles, California. (Kevork Djansezian/Getty Images)

Democratic gubernatorial candidate Gavin Newsom speaks in 2018 in Los Angeles, California. (Kevork Djansezian/Getty Images)

The legislation broadened the so-called “ABC” test, which is used to determine if a worker is legally a freelancer or not, making the test applicable to several million more workers, according to The San Diego Tribune. The broadened test effectively forced companies like Uber, Lyft and Doordash to reclassify drivers as employees.

Altogether, the big app-based tech companies have poured hundreds of millions of dollars into exempting their drivers from AB5 via Proposition 22, making the measure the most expensive in state history, according to Politico. The companies raised the money to get Proposition 22, which they wrote, on the 2020 ballot, The Los Angeles Times reported.

“Drivers have consistently said they want to remain independent contractors instead of becoming employees by a four-to-one margin,” Lyft said in a statement to The Daily Caller News Foundation. “That’s why Lyft is fighting to provide drivers independence plus benefits with Prop. 22 in California.” (RELATED: Union Boss Sentenced For Ordering Attack On Workers Who Refused To Join Union)

A September poll found that 51% of Californians supported Proposition 22 while 40% opposed it, according to SF Gate.

Lyft, Uber, Doordash and other tech companies have contributed more than $190 million into ensuring Proposition 22 succeeds, according to state filings.

A pedestrian walks by Uber headquarters in San Francisco, California. (Justin Sullivan/Getty Images)

A pedestrian walks by Uber headquarters in San Francisco, California. (Justin Sullivan/Getty Images)

“They are trying to buy their own law, so they can keep exploiting their workers for profit,” Mike Roth, spokesperson for No On Prop. 22, told the DCNF.

“If you look closely at the measure, all it does is let the companies lower wages, weaken the labor laws that are designed to protect drivers and it will permanently lock drivers into low wage jobs,” Roth added.

No On Prop. 22 is funded by labor groups including the California Labor Federation, American Federation of Labor and Congress of Industrial Organizations, Service Employees International Union and International Brotherhood of Teamsters. These organizations have dropped more than $16 million into the effort to stop Prop 22, state filings showed.

However, AB5 has also affected many freelance industries beyond app-based companies, according to Karen Anderson, a freelance writer and photographer who founded Freelancers Against AB5, a Facebook group with 19,000 members. These industries wouldn’t be exempted from the law if Proposition 22 were to succeed.

“We’ve identified at least 400 categories of professions, occupations, trades, and industries that have been impacted by AB5,” Anderson told The DCNF. “It’s a ruse that AB5 is meant to protect just the low wage worker. It’s not at all. It’s meant to control the entire independent workforce across the board.” (RELATED: EXCLUSIVE: Trump Administration Sends Rare Warning To Two Major Labor Unions)

“In January, people started pouring onto my page sharing their stories from across the vast swath of professions in the state,” Anderson said.

App-based drivers from Uber and Lyft protest in a caravan in front of City Hall in Los Angeles on Oct. 22. (Frederic J. Brown/AFP via Getty Images)

App-based drivers from Uber and Lyft protest in a caravan in front of City Hall in Los Angeles on Oct. 22. (Frederic J. Brown/AFP via Getty Images)

Real estate appraisers, professional Santa Clauses, wedding photographers, executive recruiters and pharmacists were some of the many professions that Anderson heard from. California’s independent filmmaking industry and freelance journalists were particularly hit hard, she said.

AB5 is a “threat” to the livelihoods of journalists and authors, according to Jonathan Kirsch, an attorney specializing in publishing law. Kirsch’s January article was published by The Authors Guild, a national organization for writers.

The law has already “wreaked havoc” on the independent film industry, according to Lindsay Spiller, the founder of entertainment law firm Spiller Law. (RELATED: Union Members Are Supporting Donald Trump Despite Unions Endorsing Joe Biden)

Further, the Institute for the American Worker (IAW) has published several stories of freelancers who oppose AB5. They include a freelance translator, nurse educator, actor, architectural designer and a face painting artist.

“Lilly went from routinely entertaining at corporate family events and ski resorts—large-scale events where she would subcontract with six other artists—to struggling to book jobs,” an IAW report on face painting artist Lilly Walters said.

Uber driver Sergei Fyodorov discusses why he supports a yes vote on Proposition 22 in Oakland, California on Oct. 9, 2020. (Josh Edelson/AFP via Getty Images)

Uber driver Sergei Fyodorov discusses why he supports a “yes” vote on Proposition 22 in Oakland, California on Oct. 9, 2020. (Josh Edelson/AFP via Getty Images)

When asked about No On Prop 22’s support for AB5 and its potential effect on freelancers in California, Roth reiterated that the organization is focused on Proposition 22 right now.

“I am squarely focused on Prop. 22,” Roth told the DCNF. “If Prop. 22 passes, it will not help one freelance photographer, it will not help one freelance writer. This is a measure that was written by the app companies, and it will only apply to these companies.”

But, leaders opposed to AB5 see Proposition 22 as an important stepping stone to eliminating the entire law, Anderson said. (RELATED: Philadelphia Firefighters Union Upholds Trump Endorsement After Overwhelming Internal Vote)

“If Prop. 22 passes, it drives a stake through the heart of of AB5, it blows a huge hole into it,” Anderson told the DCNF. “It would pave the way for being able to dismantle the law.”

Since AB5 was written to specifically target app-based companies, Proposition 22 succeeding would clear the way for either a court to strike AB5 down or for a 2022 ballot measure proposing to eliminate it, Anderson said. The 9th Circuit Court of Appeals is currently reviewing a lawsuit, which asks the state to exempt truckers from AB5, Reuters reported.

Unions are heavily invested in ensuring the failure of Proposition 22 because their membership has been declining, according to Charlyce Bozzello, communications director for labor union watchdog group The Center for Union Facts. California union membership, which had been declining before the coronavirus pandemic, accelerated its decline after the virus’ outbreak, The Sacramento Bee reported.

UFCW president Marc Perrone greets former Vice President Joe Biden at the union's 2020 presidential candidate forum in Altoona, Iowa. (Scott Olson/Getty Images)

UFCW president Marc Perrone greets former Vice President Joe Biden at the union’s 2020 presidential candidate forum in Altoona, Iowa. (Scott Olson/Getty Images)

“Unions have every incentive for gig workers be classified as employees,” Bozzello told the DCNF. “That way, they’re easier to organize.”

An October Center for Union Facts report uncovered the close financial ties between anti-Proposition 22 group Gig Workers Collective and the United Food and Commercial Workers International Union (UFCW). The Gig Workers Collective brands itself as a “worker-led gig economy advocacy group.”

“They’re trying to make up that membership. But, they’re not having a lot of success getting a foothold in the traditional industries that they would be organizing,” Bozzello said. “So they need to get creative, they need to go somewhere else to survive. They’ve been looking toward the gig economy.”

Meanwhile, Democratic presidential candidate Joe Biden and his running mate Sen. Kamala Harris have both endorsed AB5 and opposed Proposition 22.

In February, the House passed the Protecting the Right to Organize (PRO) Act, which would implement similar regulations, including the “ABC” test, as were in AB5, according to The Wall Street Journal. Biden said that he would sign the legislation if elected president.

The bill would harm the economy and make more workers vulnerable to union coercion, according to a WSJ editorial. House and Senate Democrats introduced the Worker Flexibility and Small Business Protection Act in September, a bill that would go even further than the PRO Act. (RELATED: ‘Pro-Labor, Pro-Worker Administration’: Labor Leaders Expect Union Resurgence Under A Biden Presidency)

Anderson said the Democrats in her group are “appalled” by Democrats’ support for such legislation. Many freelancers see Biden’s endorsement of such bills to be a “deal breaker,” she added.

“If you’re a freelancer, voting for Biden is like a tree voting for a chainsaw,” Anderson told the DCNF.

The Gig Workers Collective, UFCW and Uber did not respond to requests for comment.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel