Protecting Jobs and
The concept of working as an independent contractor has been around for centuries. In recent years, new technology has given millions of Americans the opportunity to earn money, work flexible hours and be their own boss through independent contracting. Military spouses, transitioning service members, stay at home parents, and people just looking to earn a few extra dollars have all benefited from this type of work—not to mention the millions of consumers who are able to purchase all manner of services right from their phone.
More traditional businesses like insurance, transportation, logistics, technology, and journalism also use the independent contractor model to one degree or another. The fact is that the “traditional” employment model, where your employer tells you where, when, and how to work just doesn’t fit every worker, or every business.
Unfortunately, some states are looking to pass new restrictions on independent contracting. Through laws like AB-5 in California, legislators are threatening to close off the opportunities offered by independent contracting, and smother new business models that benefit workers and consumers.
The U.S. Chamber of Commerce is committed to protecting the opportunities offered by flexible employment models. Lean more about our work on this issue below.
In the days after an election, one can find countless articles analyzing the results of myriad races, and to be sure, this year is no exception. While some aspects of the 2020 election remain unresolved one item of interest in California was settled decisively.
California voters passed Proposition 22, a ballot measure that exempts third-party delivery platforms from reclassifying drivers as employees. The vote was running 58% in favor of the measure and 42% against with over 70% of ballots counted.
Uber, Lyft, DoorDash, Postmates and Instacart contributed roughly $200 million to support the measure, which allows the companies to work around AB-5, an initiative California Gov. Gavin Newsom signed into law in late 2019 that requires employers to reclassify independent contractors as employees.
This election outcome preserves the business model of major food delivery companies in California. If Proposition 22 had not passed, the cost of transitioning gig workers to employee status would have financially gutted the already largely unprofitable restaurant delivery segment.