What is Proposition 22?
Proposition 22 is a California ballot measure passed by voters in November 2020 after a campaign that reportedly cost gig-economy companies more than $200 million to promote. It was the most expensive ballot measure campaign in state history at the time. It classifies rideshare and delivery drivers for companies like Uber and Lyft as independent contractors rather than employees, exempting them from a state law (AB 5) that would have required employee classification and its associated benefits.
What Prop 22 actually changed
Prop 22 keeps drivers classified as independent contractors, which means they don’t receive traditional employee benefits like unemployment insurance, employer-provided health coverage, or standard workers’ compensation. In exchange, it guarantees drivers certain limited benefits, including a minimum earnings guarantee while on a trip and a healthcare subsidy for drivers who meet minimum hours thresholds. These changes affect labor and employment law: how drivers are classified and what benefits they receive as workers.
What Prop 22 does NOT change: liability
This is the part rideshare companies rarely emphasize: Prop 22 has nothing to do with insurance liability. Uber and Lyft are still required under California law to carry the same tiered insurance coverage they carried before the measure passed, including up to $1,000,000 in third-party liability coverage during active trips. If a driver causes an accident, the applicable insurance policy still responds regardless of how that driver is classified for labor law purposes. Independent contractor status affects the driver’s employment relationship with the company. It does not affect whether an injured passenger, third party, or driver can recover compensation.
How this affects your claim
If you were injured as a passenger, the rideshare company’s $1,000,000 liability policy applies for the duration of your trip, exactly as it did before Prop 22. If you were a pedestrian or cyclist struck by a driver who was logged into the app, the applicable coverage period’s liability policy still applies. If you were a rideshare driver yourself, Prop 22 doesn’t prevent you from pursuing a claim against an at-fault third party or accessing contingent liability coverage during the appropriate period. See our full insurance coverage breakdown for exact amounts by period.
Frequently asked
Does Prop 22 mean I can’t sue Uber or Lyft?
No. Prop 22 governs driver classification for labor purposes, not liability for accidents. Injured parties can still pursue claims against the applicable insurance coverage.
Are rideshare drivers employees under Prop 22?
No. Prop 22 specifically classifies rideshare drivers in California as independent contractors, not employees, while providing certain limited benefits in exchange.
Is Prop 22 being challenged?
Prop 22 has faced ongoing legal challenges since its passage. Its core provisions have generally been upheld, but the legal landscape around gig worker classification continues to evolve. This page will be updated as the law develops. Consult an attorney for the most current guidance on how any changes might affect your situation.
× Employee Benefits
Prop 22 blocks this classification. Drivers remain independent contractors.
✓ Liability Claims
Prop 22 does NOT block this. Insurance obligations for accidents still apply.
