California passed Proposition 22 yesterday according to the Associated Press. The measure grants app-based transportation and delivery companies (such as Uber and Lyft) an exemption from classifying their drivers as employees. The companies were initially required to reclassify their drivers under California Assembly Bill 5 (AB5), but sought the exemption due to the significant costs associated with classifying drivers as employees (as opposed to contractors).
Extra: Uber and Lyft shares opened up 15% and 20%, respectively, on the news this morning.
