Prop 22 reversal: the future of the gig economy is up in the air (again)

Just when you thought it was over... Think again. The CA gig-worker law saga has more sequels than Fast & Furious. On Friday, a California judge ruled that Prop 22 is unconstitutional and unenforceable. In November, CA voters overwhelmingly passed the ballot measure, which has classified gig drivers as independent contractors.

• The most expensive ballot measure in CA history: Uber, Lyft, DoorDash, Instacart, and others spent more than $200M to support Prop 22. Uber and others say their drivers largely back the prop, but labor unions say it's a bad deal for workers.
• Next steps: Gig companies are appealing the ruling, and won't have to immediately reclassify workers. But it's a major wrinkle in their effort to preserve the gig model.

9 to 5 at Uber Eats... Means no moonlighting for Grubhub. With Prop 22, gigs drivers gained new benefits like: health insurance if you work at least 15 hours per week, at least 120% of minimum wage, and 30 cents reimbursed per mile driven. If Prop 22 is overturned...

• For drivers: Drivers would get full-time benefits (think: sick leave and PTO). But because they'd be employees, they would have to work a set schedule of hours, and could lose the flexibility to work multiple apps.
• For consumers: Expect even higher prices and longer waits. To fund a more expensive workforce, companies would pass costs to consumers and may cut drivers. Ride-hail prices have already soared 53% in the first half of this year due to driver shortages and the new Prop 22 benefits.