California Proposition 22 will determine the fate of app-based drivers. The proposition–App-Based Drivers as Contractors and Labor Policies Initiative–is on the ballot for voters on November 3rd. Here is an overview:
What is Proposition 22?
Proposition 22 would classify app-based drivers as independent contractors and not employees. This would override Assembly Bill 5, which addressed the classification of app-based drivers and established a three-factor test for determining classification.
If passed, Proposition 22 would define app-based drivers as workers who:
- Provide delivery or on-demand services through an online-enabled app
- Use a personal vehicle to provide transportation services for compensation
App-based drivers who meet this definition include drivers for Uber, Lyft, DoorDash, and others.
What Would Proposition 22 Change?
If proposition 22 is enacted, app-based drivers will be classified as independent contractors. That means that state employment and labor laws would not apply to them. Instead, the proposition would include wage and labor policies specific to app-based drivers, such as:
- App-based drivers would be limited to not more than 12 working hours in a 24-hour period unless the driver has at least six uninterrupted hours logged off.
- Companies would be required to provide healthcare subsidies equal to 82% of the average California Covered (CC) monthly premium for all drivers who average 25 hours per week for a calendar quarter.
- Companies would be required to provide 41% of subsidies to drivers who average 15-25 hours per week.
- Companies would be required to make occupational accident insurance available to drivers. These policies must have at least $1 million in medical expenses and lost income coverage.
- Companies would be required to provide disability payments of 66% of a driver’s average weekly income during the prior four weeks before an injury.
Some believe that Proposition 22 is the best of both worlds – drivers have the flexibility to make their own schedules, but they also have some protections offered by the companies that they contract with. To pass, the proposition must get 87.5% of votes in each California State Legislature chamber.