What Prop. 22’s defeat would mean for Uber and Lyft — and drivers
LA TimesOne way or another, the business of summoning a ride from your phone is likely to look different in California after Nov. 3. Uber, Lyft and other companies bankrolling the initiative say it would improve workers’ quality of life, providing new benefits while preserving their autonomy. Under Proposition 22, workers would also receive reimbursement of 30 cents for each “engaged” mile, but employee status would entitle drivers to 57.5 cents for each mile driven, in accordance with Internal Revenue Service guidance. It’s unlikely the companies will follow through on their threat to leave California, one of their biggest markets, said Michael Reich, a labor economist at UC Berkeley who has studied Proposition 22’s effect on drivers extensively and whose work informed ride-hailing regulation adopted in New York. Additionally, Proposition 22 would remove the teeth AB 5 gave state lawmakers to challenge companies on worker classification, said Charlotte Garden, a labor law professor at Seattle University School of Law.