Prop 22 Passed in California
Details of California Proposition 22:
Proposition 22 (prop 22) has passed in California and many people are happy about this. Prop 22 distinguishes the employment status of app-based workers.
The passing of this proposition makes app-based workers like: Uber drivers, Postmates delivery drivers and Lyft drivers “independent contractors” instead of “employees.” This employment status grants these drivers the freedom to work at their own pace and schedule.
You may be wondering why anyone would want to vote against this proposition. Well, people believe that because these major companies like Uber and Doordash classify workers as independent contractors, they are generating more profit by creating their own tax exemptions.
As individual contractors, these drivers are not entitled to any benefits like unemployment, healthcare, sick leave, etc. If you were to force these benefits onto app-based workers, they would potentially see less pay because it would cost these major companies a lot more money to provide benefits to people who work on their own time. Making someone an employee would mean that they have a set amount of time to work in order to be able to use the employers’ benefits. The millions of app-based workers in California were against being forced to work a specific schedule. The freedom of working on your time is the main attraction to app-based work.
Involved in an Accident While App-Based Working?
“Independent Contractor” means you work on your own. “Employee” status would make the employer liable for all damages resulting from accidents involving their drivers. Being an independent contractor means you’re liable for your own accidents. Personal insurance coverage alone will not protect a person driving for income because it is not for personal use.
To make sure you have coverage for app-based working, call your insurance provider. Companies like Uber and Lyft offer their drivers liability insurance which will cover damages in the event the driver’s insurance denies the claim.
What Do I Do After Getting Into an Accident Involving an Uber or Other Ridesharing Platform?
Like all other accidents, we recommend taking the following steps:
- Collect all information from the parties involved including witness contact information,
- Take as many pictures as possible from as many angles as possible,
- If necessary, notify the police to take a report,
- Always notify the police when bodily injury is noticeable,
- Seek medical attention if you are in any pains,
- File a claim and
- Speak to an attorney.
Can I Sue a Ridesharing Company for an Accident I Was In?
Listing their driver’s as “independent contractors” gives major companies like Uber a cushion to fall on. The argument is that the drivers are independent and work on their own, Uber cannot be held liable for their driver’s negligence.
Although this is an argument the companies can make, it isn’t always set in stone. California’s 2020 AB5 law protects app-based drivers by making it difficult for companies like Uber to deny their status as employees within that business entity. Your attorney may seek compensation from the major company as a last resort if the driver’s insurance denies coverage.
If you are involved in an accident with an app-based driver, contact our office for a free consultation to see if you are entitled to any coverage or compensation for damages.