University of California Institute of Transportation Studies

Throughout the U.S., app-based gig drivers provide valuable services for courier network services (CNS) like Instacart, Uber Eats and DoorDash, and transportation network companies (TNCs) such as Uber and Lyft. In California, gig labor classification is governed among other things by Assembly Bill 5 (AB 5), which passed in 2019, and Proposition 22 (Prop 22) adopted in 2020. AB 5 established the ABC Test for worker classification in California labor law. The ABC Test results in most app-based drivers being classified as employees, who are due full labor rights and benefits in California. However, gig drivers were exempted from the ABC Test when California voters approved Prop 22. As a result, under Prop 22, most CNS and TNC drivers in California are classified as independent contractors. Understanding the nuances of California labor law as it applies to app-based gig drivers is critical to addressing areas such as: worker flexibility, the need for high-quality jobs, and driver pay variability due to the lack of transparency with algorithm-based platforms. To better understand evolving CNS and TNC labor policy, we conducted interviews with experts (n=8) across the U.S. representing labor, academia, and regulators between June 2022 to February 2024 and examined policy approaches of other cities and states on this issue.