What designation was given to drivers for app-based ride-hailing and delivery apps by Proposition 22 approved in California?

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Proposition 22, passed in California, specifically designated drivers for app-based ride-hailing and delivery services as independent contractors. This designation allows these drivers more flexibility in their work schedules and operations compared to traditional employment.

The classification of independent contractors is crucial as it determines the rights and benefits that workers are entitled to. By designating drivers in this manner, Proposition 22 enables companies to avoid the obligations that come with employee status, such as health benefits, unemployment insurance, and various labor protections.

This legislative move underscores the broader debate about the gig economy and worker classification, balancing the needs of flexibility sought by many gig workers against the benefits of employment traditionally found in other sectors.

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