Everything You Should Know About AB5 & Its Impact on Uber

While the gig model delivers real benefits to customers in terms of convenience and low prices, the paradigm exists in a legal gray area in terms of worker classification, depriving workers of minimum wage protection, workers’ compensation, health insurance, retirement plans, and paid time off.

Prop 22 is the California ballot proposition that would exempt app-based transportation and delivery companies from having to provide employee benefits (such as minimum wage, paid time off, and sick leave) to gig workers.

he vast majority of drivers choose app work precisely because it is so different from being an employee. In nearly every survey, drivers by a 4:1 margin say they don’t want to be employees. A more recent survey of California drivers showed that 88% began driving because they needed a job where they could choose where and when they work — and 68% of... See more

We’re concerned that the gig model is reliant on the misclassification of workers, and fear for the future of work in this country should the model continue to gain steam without significant updates.

By allowing gig companies to classify their workers as independent contractors who earn less than the minimum wage, there are negative externalities to all taxpayers—who foot the bill for government assistance programs like Medicaid. As taxpayers, we are in effect subsidizing the profitability of gig companies that have large independent contractor... See more