Welcome back to Human Capital, and congratulations on navigating another challenging week in an extraordinary year.

With the Associated Press now projecting Joe Biden as the winner of the presidential election, those dedicated to Diversity, Equity, and Inclusion (DEI) initiatives are anticipating a positive shift, having previously voiced concerns about potential job security under a continued Trump administration.

Simultaneously, in California, voters have approved Proposition 22, the ballot measure supported by Uber and Lyft concerning gig worker classification. We will now explore the details of this outcome and its future ramifications.

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California Gig Workers to Remain Independent Contractors

As many of you are likely aware, Proposition 22, the gig worker measure backed by Uber and Lyft, has been approved by California voters. 

The current vote tally stands at 58.4% in favor of Prop 22 and 41.6% against. The map below illustrates that opposition was largely concentrated in coastal counties of Northern California. 

“The passage of Prop 22 required gig companies—which have not yet achieved profitability—to spend an unprecedented $205 million on their campaign, effectively establishing a political model for future, undemocratic, corporate lawmaking,” stated Meredith Whittaker, co-founder of AI Now Institute, and Veena Dubal, professor of law at the University of California, Hastings, in a written statement.

During Uber’s earnings call this week, Uber CEO Dara Khosrowshahi announced that the company intends to “actively champion laws similar to Prop 22” across the United States and internationally.

Labor organizations, meanwhile, are already formulating their next course of action. Partnerships for Working Families, for instance, is considering advocating for improved federal worker classification laws through the Biden administration’s Department of Labor, as reported by Cal Matters. Alternative strategies include legal challenges concerning worker’s compensation stipulations or the supermajority requirement of ⅞ to amend Prop 22.

The following are statements released in the past few days from various stakeholders.

Uber CEO Dara Khosrowshahi to drivers: “This vote provides drivers and delivery people with what many of you have requested: access to benefits and protections, while preserving the flexibility and independence you value and deserve.

The future of independent work is now more secure because so many drivers like you voiced their opinions—and voters throughout the state listened.”

Lyft Chief Policy Officer Anthony Foxx: “California voters have made their decision, and they have supported the over one million drivers who clearly expressed their desire for independence alongside benefits. Prop 22 is the first law in the nation to mandate health, disability, and earnings benefits for gig workers. Lyft is prepared to collaborate with all interested parties, including drivers, labor unions, and policymakers, to create a more robust safety net for gig workers in the U.S.”

DoorDash CEO Tony Xu: The approval of Prop 22 represents a significant victory for Dashers, merchants, customers, and communities. Californians have chosen to support drivers, recognizing the importance of flexible work and the critical need to extend new benefits and protections to workers like Dashers.

Gig Workers Rising: “Wealthy corporations have exploited the ballot measure system in California by spending vast sums of money to mislead voters. The success of Prop 22, the most costly ballot measure in U.S. history, is a setback for our democracy and could encourage other corporations to attempt to write their own laws.” 

Gig Workers Collective: “Our organizing efforts have always been unconventional, given our classification as non-employees and the lack of legal protections for organizing or unionizing. However, we still managed to build worker power and challenge the status quo. We are disappointed with tonight’s outcome, particularly because this campaign relied on deception and fear tactics. Companies should not be able to purchase elections. Nevertheless, we remain committed to our cause and prepared to continue our fight.” 

DEI Professionals Anticipate a Biden Administration

Uber Chief Diversity Officer Bo Young Lee shared on Twitter that, for many DEI professionals, “the election results will influence how we approach our work and may even affect our long-term employment.”

With Biden now the projected president, a change in administration will likely lead to a revision of the executive order restricting certain types of diversity training for federal contractors.

In late October, three civil rights organizations filed a federal class-action lawsuit challenging the Trump administration’s executive order. This action followed Microsoft’s disclosure that the U.S. Department of Labor Office of Federal Contract Compliance Programs had contacted the company regarding its racial justice and diversity commitments announced in June.

Shine App Founder Discusses Mental Health for Black People and People of Color

“There is nothing fundamentally new happening with Black people dying in the streets,” Lidey explained. “[Black people] have always known that. But when all of your friends and colleagues become aware in this very new way and want to understand and want to share and want to ask you questions and you’re watching this play out at this national level and you’re bombarded at the global level, right I mean, this is in our DNA. Our cells were in the cells of those people who were enslaved.”’

The complete conversation can be found here.