DoorDash, Uber, Lyft Threaten Ballot Initiative as AB 5 Gets Closer to Approval

Tuesday, September 3, 2019 | 1

The California Senate Appropriations Committee voted to send Assembly Bill 5 to the Senate floor on Friday, and gig economy companies are gearing up for a fight.

If AB 5 passes in the Senate, DoorDash, Uber and Lyft — employers that recruit independent contractors — say they will introduce a ballot measure in 2020 to combat the bill and spend up $90 million in the effort, according to Fox&Hounds, a California business and politics media site.

The bill, by Assemblywoman Lorena Gonzalez, D-San Diego, focuses on labor code disputes, which include workers’ compensation. It would call for a three-part "ABC test" to determine if a worker is an employee or independent contractor, based on the Dynamex Operations West v. Superior Court decision from 2018.

If “gig workers” aren’t made an exception to the bill, the companies will each pony up $30 million to create a ballot initiative.

The trio on Thursday announced the creation of the Californians for Innovation and Opportunities fund, which would support a ballot initiative to protect the gig economy business model. The Dynamex decision has created uncertainty in the field, according to the companies.