In a potentially significant development, voters in California, US have voted to allow app-based taxi drivers working with companies like Uber and Lyft to treat their drivers as independent contractors, and not as employees, as per a projection by CNN, and other American publications. What is Prop. 22? Proposition 22 was a ballot measure — a proposed legislation that people can vote on — that will allow "gig-economy" companies to sidestep a Californian legislation AB5, under which these companies had to make drivers full time employees, thus giving them paid leaves and health insurance, among other things. Uber and Lyft had hit out against the law, threatening to leave California. Instead, the two companies along with several others backed Prop. 22, a counterproposal that would continue to classify drivers as contractual workers, but assuring them minimum wage and health insurance. The California Labor Federation, however, was unimpressed and called Prop. 22 a "misleading initiative". Companies go all out to get Prop. 22 passed: Prop. 22 become one of the most well-funded ballot initiative in Californian history, among ballot measures listed on Ballotpedia; the support side got more than $200 million, while the anti-side got less than $20 million. Uber, Lyft, Doordash, Instacart and Postmates invested heavily into the ballot. Uber had contributed over $57 million; Lyft, $49 million; DoorDash, $52 million; Instacart, $32 million and Postmates, $13 million. The opposing side was funded by labour unions. Other media outlets such as The Verge reported how Uber and Lyft used their respective apps to bombard…
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