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Proposition 22 and the Gig Economy: Wage Requirements, Health Stipends, Removal of Noncompetes

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, March 24, 2021

Recorded event now available

or call 1-800-926-7926

This CLE course will guide employment counsel, gig businesses, and those businesses relying on gig workers to address the legal issues that arise from the passage of Proposition 22 in California. The panel will address the issues of wage and hour requirements, the requirements related to payment of health insurance stipends, and the restrictions to noncompetes and other restrictive covenants. The program will examine how this change to the gig economy impacts employers across multiple industries on worker classification, state and federal regulations, and exemption issues.


When Prop 22 was passed, there was concern from businesses over the threat of losing the ability to utilize independent contractors (ICs). Would this destroy the IC model of business? Does this new law create an entire third rail of employment categorization?

Employment counsel needs to be aware of the restrictions and requirements of Prop 22, particularly in the event businesses want to take advantage of the legislation. Prop 22 is limited to businesses that use apps. Prop 22 exempts these businesses from AB 5, a 2019 California law that codified the California Supreme Court's "ABC" test used to determine employee vs. independent contractor classification.

Prop 22 also changes how wages are established for gig workers and when and how much of a healthcare stipend must be paid for classified workers. Counsel must be prepared to address when a gig worker meets the requirements of Prop 22 and how a business must amend its practices to meet these obligations.

Listen as our expert panel discusses the employment law changes outlined in Prop 22, which are likely to be introduced in other state legislatures soon. The panel will provide best practices for establishing compliant policies related to Prop 22.



  1. History of Prop 22
    1. Applicable businesses regulated
    2. Applicable workers regulated
  2. Control and flexibility of drivers
  3. Restriction on noncompetes
  4. Structures of compensation
  5. Healthcare stipend
  6. The future of the gig economy


The panel will review these and other relevant topics:

  • What businesses are governed under Prop 22? Which workers in those businesses are governed under Prop 22?
  • What rights do workers have to establish schedules? Are noncompetes enforceable against gig workers?
  • How is compensation structured under Prop 22? When is overtime applicable?
  • What type of healthcare stipend is owed to gig workers under Prop 22?


Bressman, Caroline
Caroline E. Bressman

Nichols Kaster

Ms. Bressman represents thousands of workers in wage and hour collective, class, and hybrid matters arising under...  |  Read More

Dailo, Nicole
Nicole F. Dailo

Nilan Johnson Lewis

Ms. Dailo counsels and represents employers in discrimination, wage-and-hour, and non-compete and trade secret...  |  Read More

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