California voters approve Proposition 22
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Monday, November 9, 2020

California voters approve Proposition 22

By Payroll and Entitlements Editorial Staff

California voters at the November 3, 2020 general election approved Proposition 22, which classifies app-based rideshare and delivery drivers as independent contractors, rather than employees or agents of the companies that hire them. Proposition 22 added new provisions to the Business and Professions Code, but also made the provisions applicable to the Personal Income Tax Law.

Under the measure, app-based rideshare and delivery drivers are independent contractors as long as the hiring company does not:

  • unilaterally set their hours;
  • require acceptance of specific ride and delivery requests; or
  • restrict them from working for other companies.

This overrides any provision of law to the contrary, including but not limited to those in:

  • the Labor Code;
  • the Unemployment Insurance Code; and
  • any orders, regulations or opinions of the Department of Industrial Relations or any board, division, or commission therein. (Proposition 22, approved by voters at the November 3, 2020 general election).

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