London Daily

Focus on the big picture.
Thursday, Jun 04, 2026

The evolving gig economy and the battles between companies and workers

The evolving gig economy and the battles between companies and workers

A victory by gig-economy companies in California to keep classifying their workers as contractors has given the industry a playbook to face rising labor movements nationwide. The efforts to force the companies to treat their workers like full-time employees could annihilate their business models.

Gig companies like Uber, Lyft, Postmates, Doordash and Instacart spent more than $200 million this year backing a California state proposition known as Prop 22 — that has enshrined their workers as contractors in exchange for some limited benefits, including funding that can be used for health insurance.

  • They were fighting a new law in California, known as AB5, that changed rules on worker classification.

  • They won: 58% of California voters backed their gig-worker proposition.

    Uber planned to operate only in the San Francisco Bay Area, Los Angeles, Orange County and San Diego — employing just 45,000 drivers (instead of 200,000) — if California voters had rejected Prop 22 last month

Now the companies are working to export this approach to other states.
  • They're already begun to pour resources into states like Illinois.

  • They recently also formed the the App-Based Work Alliance, an advocacy group focused on federal-level policy.


Years of worker discontent and activism collided with this year’s pandemic to lay bare just how vulnerable gig workers are, while also giving them access for the first time ever to some traditional benefits.

  • That's boosted pro-labor efforts pushing for gig companies to reclassify workers as employees so they can receive full benefits and legal rights and protections.

  • Earlier this year in May, California Attorney General Xavier Becerra (who’s been selected to be the next secretary of health and human services by President-elect Biden), filed a lawsuit against Uber and Lyft for allegedly misclassifying their ride-hailing drivers. He was joined by the city attorneys of San Francisco, San Diego and Los Angeles.

The industry faces a long road:
  • States: 32 other states already use the same legal test to determine worker classification as California’s law, and some states are already introducing (or looking toward) even stricter measures.

  • Congress: The PRO Act, a bill that would expand collective bargaining rights and allow the National Labor Relations Board to fine companies breaking laws, passed in the House, though it's unlikely to be taken up by a GOP-controlled Senate.

  • White House: Both Biden and Vice President-elect Harris have expressed support for AB5, and their labor platform is strongly pro-union and endorses the PRO Act.

With their victory at the California voting booth, gig-economy companies hope 2020 will be a turning point in their efforts to thwart tougher rules.

Newsletter

Related Articles

0:00
0:00
Close
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×