Tuesday, October 13, 2020

If Prop 22 is Defeated who becomes a Doordash Employee?

If proposition 22 is defeated in California, Doordash, as well as all the other app based gig driver companies will have to reclassify all their drivers from independent contractors to employees. With so many dashers out there, how would this exactly work? Does every dasher just automatically become an hourly employee?




If Proposition 22 is defeated it will create a big mess for the app based gig economy jobs?

I'm sure that Doordash, Uber, GrubHub, Postmates, Instacart and all the other gig work companies out there expect Proposition 22 to pass, and quite honestly so do I. It's really difficult to imagine Prop 22 being defeated, but what if it was defeated? It would really be a big mess for the app based gig worker companies. It makes you wonder if they would even continue to conduct business in California.




Would Doordash make all their California drivers employees if Prop 22 was defeated?

This would be impossible. I don't know the exact number of drivers Doordash currently has in California, but I do know that as of a few years ago, there were 100,000 drivers in the United States and Canada. I'm sure those numbers have went up substantially during the past couple of years. I would like to throw a guess out there on how many California dashers there currently are, but I'm afraid I'd be way off. All we know is that there are a lot of California dashers, and we can safely guess that it's many many thousands.

Doordash would not be able to hire all the current California dashers as employees. That would be a crazy payroll that they would have to take care of. It would be a bold move for a company that is already not profitable.



By paying all of these drivers by the hour, Doordash would really be hanging themselves out to dry. It would be better to just leave the state of California. Sure, everybody knows California is golden when it comes to business, but it would be foolish for anybody out there to think that a company cannot thrive without this one state.

Chances are slim that Doordash or any of the other app based gig work companies will leave California. If they have to abide by AB 5, they will have to pick and choose which drivers will remain with them. That will be a very daunting task.




How would Doordash choose which drivers to make their employees?

If Doordash did decide to stay in California, and made their drivers into hourly employees, they would be selective in the dashers they would choose. What there selective process would be is anyone's guess. Nobody knows how it would work, but it's not like every dasher out there is just going to get transformed into employees.

Doordash would have to somehow find a way to choose which drivers will continue to work for them as hourly employees. Sure, most dashers out there think they are pretty special, but if this selective process were to happen, many of these special dashers will be out of a job.



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Would Doordash choose their drivers by seniority? Maybe they will go by ratings? Maybe everybody will have to start from scratch and send Doordash a resume? All of this is anybodies guess.

We also have to remember that a large percentage of dashers will choose not work for any of the gig companies as employees due to other obligations. That means that even if Doordash offered them a position, they would decline it. Hopefully none of this happens though, and we don't have to worry about any of it. Proposition 22 should win, and all of this will be over. With a Prop 22 victory, dashers have some new benefits to look forward to. Until then, happy dashing!




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