Prop 22 Passes: CA Gig Workers Remain Independent Contractors

While much of the focus has been on the presidential race, a California ballot initiative known as Prop 22 is projected to pass. The proposition will keep gig workers, such as those who drive for Uber Lyft, Instacart, DoorDash, etc, classified as independent contractors rather than employees.

With 100% of precincts reporting, 58.4% of voters (more than 7 million people) voted for Prop 22, while 41.6% of voters (about 5 million people) voted against it.

The Benefits and the Drawbacks

The ballot measure has many clear upsides, such as: implementing an earnings floor, 30 cents per engaged miles for expenses, a healthcare stipend, occupational accident insurance for on-the-job injuries, protection against discrimination and sexual harassment, and automobile accident and liability insurance.

However, because gig workers will remain independent contractors, they will be denied workers full benefits, true minimum wage guarantees and stability - things that are especially crucial during the coronavirus pandemic.

What This Means for Workers’ Compensation

Because gig workers are not classified as employees, they will not be eligible for workers’ compensation benefits.

The initiative does provide that the companies must maintain occupational accident insurance to cover medical expenses and lost income “resulting from injuries while the app-based driver is online with a network company's online-enabled application or platform”.

Unfortunately, the proposition does not define injuries or mention coverage for occupational illness or disease - two things that workers’ comp. laws explicitly cover.

How This Falls Short of Workers Compensation Benefits

1. Prop 22 requires occupational insurance to cover medical expenses incurred only up to one million dollars. While this might seem like a big number, if a worker incurs a catastrophic injury, medical bills can easily exceed one million dollars. California workers' comp has no dollar treatment limits, and treatment is provided as long as the treatment is reasonable, necessary and meets certain medical treatment protocols.

2. Prop 22 provides no money for vocational training if the injury permanently prevents the gig worker from resuming his or her platform-based work. The California workers' comp system provides a retraining benefit ($6,000), as well as money from a special California supplemental return to work fund ($5,000).

3. Prop 22 provides no money to compensate the worker for permanent disability. Under the California Labor Code, workers may be entitled to a settlement or award depending on the extent of their disability. Prop 22's occupational insurance would not be required to compensate for this.

4. There is no clear mechanism to administer the occupational benefits under Prop 22 and no clear dispute resolution process.

Some worker benefits are better than none, but it’s clear that Prop 22's occupational insurance provisions fall short of the provisions of the California workers' comp system.

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Cole, Fisher, Cole, O’Keefe + Mahoney is Central California’s leading workers’ compensation and social security disability law firm. With over 30 years of successful experience, we are committed to securing maximum benefits for our clients in the Fresno, California area. Schedule a free consultation today.