Vincent Vernuccio, a senior policy advisor at the Mackinac Center, said on a September 2 episode of the Lunch Hour podcast that the modifications made to California’s AB 5 show that gig workers like rideshare drivers want to be independent contractors due to the flexibility it provides.
"Most of the drivers, they want the flexibility," said Vernuccio. "They want to be able to say, ‘I want to start working when my kids go to school, be done by the time they get home, and maybe work again after they go to sleep. Thankfully, voters in California said, 'No, you've gone too far.' Even the bill's sponsor admitted they went too far, and they started creating exemptions and essentially gutted the law."
AB 5, also known as the Gig Worker Bill, took effect in January 2020, according to Pershing Square Law Firm. The goal of the legislation was to establish all employment relationships in the state as employer-employee relationships unless the employee could prove otherwise. Original exemptions provided by AB 5 applied to doctors, dentists, insurance agents, real estate agents, and hairstylists. In September 2020, Governor Gavin Newsom signed AB 2257, which exempted more professions from AB 5, including freelance writers and editors, photojournalists, and landscape architects.
In November 2020, California voters approved Proposition (Prop) 22. According to an opinion from the state supreme court issued in July 2024 upholding the measure, Prop 22 was intended to "protect the basic legal right of Californians to choose to work as independent contractors with rideshare and delivery network companies," "protect the individual right of every app-based rideshare and delivery driver to have the flexibility to set their own hours for when, where, and how they work," and "require rideshare and delivery network companies to offer new protections and benefits for app-based rideshare and delivery drivers."
According to a post on Uber’s website, Prop 22 "provides historic and important protections and guarantees to workers in California." Benefits for Uber drivers and couriers under Prop 22 include health care stipends for drivers who do not have access to health insurance plans, a minimum earnings guarantee of at least 120% of minimum wage plus 35 cents per mile, and occupational accident insurance.
A survey conducted among Californians who drive for Uber, Lyft, DoorDash, and Instacart in 2021 found that 88% of respondents said Prop 22 had been "good for them," with 76% saying Prop 22 "increased my pay," according to a report from Protect App-Based Drivers and Services. Additionally, 84% of survey respondents said they would recommend that other states pass laws similar to Prop 22.
In addition to serving as a senior policy advisor at the Mackinac Center for Public Policy, Vernuccio co-founded and serves as president of the Institute for the American Worker. According to the Institute’s website, he previously served in the George W. Bush Administration’s Department of Labor.