The titans of the so-called gig economy bankrolled the most expensive ballot measure in state history, which was decided Tuesday with 58% of more than 11 million voters choosing to keep drivers classified as independent contractors able to set their own hours.
Shares of both companies surged 11% to 13% before the opening bell Wednesday after the huge victory.
The outcome was a defeat for labour unions that had pushed for a state law aimed directly at
Supporters of Proposition 22 said the outcome showed voters wanted to preserve the flexibility of the current system. Opponents said the companies had bought their own law and vowed to continue fighting for drivers' rights.
The companies sought an exemption, taking their fight to voters with a campaign that included TV ads, mailers and messages that appeared on their app for both customers and drivers.
Opponents said the companies exploit drivers to keep profits high and the ballot measure would deprive workers of rights like overtime pay and workers’ compensation.
Supporters said the measure would allow drivers to maintain the freedom to work hours they choose and would provide other benefits.
“I don’t need them to control me and tell me when I’m going to work and not going to work,” French said.
More than
“The obscene amount of money these multibillion-dollar corporations spent misleading the public doesn’t absolve them of their duty to pay drivers a living wage,”
The spending, which didn't account for
“What Prop. 22 does is it raises the tide of all ballot measures,” McCuan said. “It sets records that are just going to be blown past the next time. ... It makes the parallel route of direct democracy a playground that will be measured in the billions in a few (election) cycles.”
The measure had support nearly statewide except in the
Although drivers would remain independent contractors exempt from mandates such as sick leave and expense reimbursement, they would receive some “alternative benefits,” including a guaranteed minimum wage and subsidies for health insurance if they average 25 hours of work a week.
The will of the voters could undermine a recent appeals court decision that sided with state Attorney General
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