Uber and Lyft spent $200 million to avoid having to treat their workers as employees, she said.
Prop 22 is no doubt contentious.
But what exactly is it and how will it affect you as a driver?
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Those are all expenses borne by employers which the Ubers of the world want to avoid.
Ravenelle said that framing created a false dichotomy, and that shouldnt have to be an either-or scenario.
Why were Uber and Lyft ordered to reclassify their workers in the first place?
When Uber and Lyft didnt comply with the new law, the state sued the two rideshare companies.
The passage of Prop 22 suggests the end of the legal battle in California.
AB 5 is still in effect, however.
It applies to much more than these handful of gig companies.
Only app-based transportation and delivery companies are now exempt from the labor law.
Its unclear how other gig companies that arent specifically transportation- or delivery-related will be affected.
W-2 benefits would have ostensibly been extended to drivers had Prop 22 failed.
The gig companies have not yet released a timeline of when their new benefits will roll out.
In an email to drivers, Uber said they will be available as soon as possible.
Adam Hardy is a staff writer at The Penny Hoarder.
He covers the gig economy, entrepreneurship and unique ways to make money.
Read his latest articles here, or say hi on Twitter@hardyjournalism.
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