Employee or Independent Contractor?

Ballot Measure to Repeal AB5 for App-Based Drivers Approved by California Secretary of State


From the California Secretary of State:

New Measure Eligible for California’s November 2020 Ballot

Changes Employment Classification Rules for App-Based Transportation and Delivery Drivers. Initiative Statute.

SACRAMENTO, CA – Secretary of State Alex Padilla announced that an initiative became eligible for the for the November 3, 2020 General Election ballot today.

In order to become eligible for the ballot, the initiative needed 623,212 valid petition signatures, which is equal to five percent of the total votes cast for governor in the November 2018 General Election.

A measure can become eligible via random sampling of petition signatures if the sampling projects that the number of valid signatures is greater than 110 percent of the required number. The initiative needed at least 685,534 projected valid signatures to become eligible by random sampling, and it exceeded that threshold today.

On June 25, 2020, the Secretary of State will certify the initiative as qualified for the November 3, 2020 General Election ballot, unless it is withdrawn by the proponents prior to certification pursuant to Elections Code section 9604(b).

The Attorney General’s official title and summary of the measure is as follows:

CHANGES EMPLOYMENT CLASSIFICATION RULES FOR APP-BASED TRANSPORTATION AND DELIVERY DRIVERS. INITIATIVE STATUTE. Establishes different criteria for determining whether app-based transportation (rideshare) and delivery drivers are “employees” or “independent contractors.” Independent contractors are not entitled to certain state-law protections afforded employees—including minimum wage, overtime, unemployment insurance, and workers’ compensation. Instead, companies with independent contractor drivers will be required to provide specified alternative benefits, including: minimum compensation and healthcare subsidies based on engaged driving time, vehicle insurance, safety training, and sexual harassment policies. Restricts local regulation of app-based drivers; criminalizes impersonation of such drivers; requires background checks. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increase in state personal income tax revenue of an unknown amount. (19-0026A1.)

The proponents of the measure are Davis White, Brian McGuigan, and Keith Yandell. They can be reached c/o Kurt Oneto of Nielsen, Merksamer, Parrinello, Gross & Leoni, LLP at (916) 446-6752. The address for Nielsen et al., LLP is 1415 L Street, Suite 1200, Sacramento, CA 95814.

Source: AP20:048 New Measure Eligible for California’s November 2020 Ballot | California Secretary of State

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