Besides casting votes for federal, state, and local officials, voters throughout the country had the opportunity to change laws directly through ballot referendums on Election Day. Voters endorsed several ballot measures affecting employment laws:

California: Proposition 22

After a $200 million campaign backed by Uber, Lyft, and DoorDash, among others, California voters passed Proposition 22, which allows gig economy companies to continue to classify their app-based rideshare and delivery drivers as independent contractors rather than employees. Prop 22 essentially exempts gig economy drivers from the stringent “ABC” test codified under Assembly Bill 5, permitting workers to be considered independent contractors only where they perform work outside the usual course of the employer's business.

Although gig economy drivers are not entitled to typical employee benefits such as minimum wage, overtime, paid sick leave, and unemployment insurance, Prop 22 does grant drivers some benefits, including a minimum earning guarantee for “engaged time,” meaning the time a driver is actively responding to a ride or delivery request. Drivers will also be afforded discrimination and sexual harassment protections, and health insurance stipends if they drive a minimum number of hours. 

Colorado: Proposition 118

Voters in Colorado passed Proposition 118, which establishes paid family and medical leave for most Colorado workers. Under the new law, covered individuals—including self-employed and gig economy workers—are entitled to 12 weeks of paid family or medical leave, with an additional 4 weeks available to individuals with pregnancy or childbirth complications. Benefit amounts are based on a percentage of a person's average weekly wage, capped at a maximum of $1,100 per week.

A covered individual can take leave for the following reasons:

  • caring for their own serious health condition;
  • caring for a new child during the first year after the birth or adoption or for foster care of a new child;
  • caring for a family member with a serious health condition;
  • when a family member is on active duty military service or is called for active-duty military service; and
  • when the individual or the individual's family member is a victim of domestic violence, stalking, or sexual assault.

The Colorado paid family and leave program will be funded through a state payroll tax which will be paid for by employers and employees in a 50/50 split. Colorado will start collecting fees in 2023 and will offer benefits beginning in 2024.

Florida: Amendment 2

Florida voters elected to increase the state minimum wage from $8.56 to $15 over the next six years. Amendment 2—which cleared the required 60% supermajority threshold to pass by less than 1%—increases the minimum wage to $10 per hour starting September 30, 2021, and then raises the minimum by $1 each year until it reaches $15 per hour on September 30, 2026.

Florida is the eighth state to adopt an eventual $15 minimum wage, joining California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New York, and Washington D.C.

Next Steps

The WilmerHale employment team will continue to monitor changes to state and local employment laws and can provide clients advice regarding their business's specific needs.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.