California Proposition 22

Definition

Prop 22 was a California ballot initiative passed in November 2020 that exempted app-based transportation and delivery workers (Uber, Lyft, DoorDash, Instacart, etc.) from California's AB 5 worker classification law. Under Prop 22, qualifying gig workers remain independent contractors but receive certain minimum guarantees: minimum earnings, healthcare subsidies, and accident insurance.

Prop 22 set a national precedent that has been studied in other states considering gig worker classification reform.

Common questions about California Proposition 22

Related terms

• Gig worker — A worker performing short-term jobs or piecework, typically via an app or platform — usually classified as 1099.
• Worker classification — The legal determination of whether a worker is an employee or independent contractor for tax, benefits, and wage-and-hour purposes.
• Independent contractor — A worker who provides services to a business under a contract but is not an employee — typically receiving 1099 income.

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