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Tax Law

Legal Alert: California and San Francisco ballot measures raise important worker classification issues

Last week, California voters passed Proposition 22 – which considers app-based drivers for rideshare and delivery companies to be independent contractors – and San Francisco voters passed Proposition L – which imposes an additional tax on businesses where compensation for executives significantly exceeds the median compensation of San Francisco employees. These ballot measures could have substantial financial impacts on employers with workers in the Golden State. The measures also raise important questions that businesses should consider regarding the classification of their workers as employees or independent contractors for purposes of applying San Francisco’s new CEO Tax under Proposition L.

Read our full Legal Alert here.