Proposition 22
Here is a
proposition which amends AB 5 and is intended to create "independent" contract
drivers for application-based transportation (rideshare) and delivery.
According to the text provided by
Secretary of State Alex Padilla: "Companies with independent-contractor drivers will be required to.
provide specified alternative benefits, including: minimum
compensation and healthcare subsidies based on engaged driving time, vehicle insurance, safety training, and-sexual harassment policies. Restricts local
regulation of
app-eased drivers; criminalizes impersonation
of such drivers; requires background checks."
Webster's Collegiate Dictionary defines "Independent": "Not subject
to control by others - SELF GOVERNING, not affiliated with a larger controlling
unit." An independent contractor
establishes his own rate of pay; he is currently required by law to pay taxes,
obtain the necessary licenses, insurance and equipment to do the job, and be
responsible for his own health and retirement plan.
California employers must pay and collect social security, FUI, SUI,
workman's Comp and a host of federal and state requirements including health
benefits and paid vacations. It is
little wonder that employers turn to independent contractors in an attempt to
reduce employee costs.
Proposition 22 does very little to reduce red tape for employers who
hire independent contractors and ignores what the term "independent" actually
means.
California needs independent contractors to off-set the constant
legislative requirements involving licenses, fees and red tape which interferes
with free trade and raises the cost to consumers.
AB 5 should not be amended - it should be deleted!
Piper's Papers