Prop 22 carves out an exception from state labor law for app-based transportation and delivery gig companies, including Uber, Lyft, DoorDash, and Instacart, allowing the companies to continue to classify their workers as independent contractors rather than employees. Labor Center chair Ken Jacobs and economics professor Michael Reich have produced several papers that examine the implications of Prop 22 compared to employee status for drivers, consumers, taxpayers, and the companies.
Future of Work & Workers
Research & Publications
In this report, we focus on trends in technology adoption in the retail sector, looking beyond the effects of the current crisis to trace how retailers are using digital technologies in ways that alter the quality and quantity of front-line retail jobs. While we recognize the pandemic’s possible impacts on the retail workplace throughout the report, the bulk of our discussion concerns longstanding trends that appear likely to continue over the next five years or longer.
New technologies in the retail sector are likely to mean more monitoring and coercion of workers, and a stronger advantage for large companies like Walmart and Amazon, according to a new report released today from the U.C. Berkeley Labor Center and Working Partnerships USA.
The Effects of Proposition 22 on Driver Earnings: Response to a Lyft-Funded Report by Dr. Christopher Thornberg
Thornberg over-estimates driver gross earnings (before expenses) based on data that is not representative of drivers in California. He also underestimates driver costs. In doing so, he significantly overstates what drivers earn on net now, and would earn under Proposition 22.
This report examines the drivers of technological change in the U.S. health care industry and explores how technologies may be used in response to the challenges facing the industry over the next five to 10 years. We also assess how technological change in health care may affect health care workers, who represent 12% of total employment in the United States—around 18 million workers.
September 3, 2020
Change and Uncertainty, Not Apocalypse: Technological Change and Store-Based Retail
October 9, 2020
Customers Still Like to Shop in Person, Even if They Get Only to the Curb
June 23, 2020
Technological Change in Health Care Delivery
June 8, 2020
COVID-19 and Technology at Work
October 22, 2019
The Future of Warehouse Work: Technological Change in the U.S. Logistics Industry
Uber, Lyft, AB5, and Prop 22
October 19, 2020
Labor Center research and Proposition 22
September 24, 2020
Fact check: Will Uber, Lyft drivers get paid less than minimum wage under Proposition 22?
June 29, 2020
Uber Rides Cost More? OK
May 7, 2020
What would Uber and Lyft owe to the State Unemployment Insurance Fund?
October 31, 2019
The Uber/Lyft Ballot Initiative Guarantees only $5.64 an Hour
Economists at the University of California at Berkeley Labor Center crunched the numbers and included other costs, like the time when drivers must wait to be matched with a rider. They concluded drivers’ actual wage to be closer to $5.64 per hour.
A Berkeley Labor Center study found Prop 22 would net ride-hail and delivery drivers a minimum wage of $5.64 an hour—California’s minimum wage is $12 an hour.
The benefits stipulated in Prop 22 are not as good as those for someone classified as an employee. One study said those “promises in the proposition were worth the equivalent of only $5.64 per hour” (University of Berkeley Labor Center).
A study by three research groups at the University of California at Berkeley found that Uber and Lyft drivers would be guaranteed only an estimated $5.64 per hour. This no doubt would have surprised 40 percent of those in a survey of early voters who said they had supported Proposition 22 to ensure workers earned livable wages.
Labor advocates say it’s possible to both have flexibility and be an employee. Ken Jacobs, chair of the UC Berkeley Center for Labor Research and Education, sees Uber’s hybrid model as an “old model wrapped in new technology,” with the companies shifting the costs and risks to workers.