Anyone who has been following why California sued Uber and Lyft know about Proposition 22 and how well anticipated the ballot in California is.
Props 22 is an initiative that ensures that food delivery and rideshare drivers working for both Uber and Lyft be classified as employees as opposed to their existing classification of contractors. Along with the change in classification, drivers would receive employee protection and benefits. But would be stripped of the flexible hours that attract many gig workers who have taken driving for the companies as a helpful side hustle.
On November 3rd, California voters successfully voted in favor of the Proposition. So what does this mean for the gig economy workers?
Compensation
Drivers are now entitled to at least 120% of the minimum wage for time spent being active on an app. They will also receive 30 cents per each mile, which will be contributed towards their operational expenses.
There is no cap to the money drivers can make. But there is a minimum starting point for them. The minimum wage will be set depending on the city in which they are working. While this accounts for active on app hours, it deducts the time it takes for drivers to get to the pickup location.
Healthcare
If drivers start completing 25 hours on rideshare apps, they will receive healthcare contributions as per the Covered California Plan. The plan starts at 15 hours a week. If a driver switches between multiple driving apps but completes 25 hours by adding both app hours, they are still eligible for this plan.
Along with this, they will get Occupational Accident Insurance, accident and liability insurance for automobiles, and protection from discrimination and harassment. The Injury Protection Plan that Uber always offered is still a part of it.
Was the Proposition indeed the best course of action? Most drivers think so. The alternative to Props 22 is AB5, which, though devised to give employees the protections they deserve, would have toppled the business model Uber and Lyft rely on. According to the CEO of Uber, the platform could not afford employee classification and would have to let 80% of the drivers go.
