California Proposition 22 (Prop 22) is a law that allows app-based transportation and delivery companies to call their drivers “independent contractors” instead of “employees.” Also known as the “App-Based Drivers as Contractors and Labor Policies Initiative,” Prop 22 changes some rules from Assembly Bill 5 (AB5). AB5 classified rideshare and delivery drivers as employees. However, Prop 22 keeps drivers as independent contractors while adding new labor and wage rules that the state’s current laws did not cover.
In July 2024, the Supreme Court confirmed that Prop 22 is constitutional, making it a permanent part of California’s employment laws. If you work in the gig economy, here’s what you need to know:
Wage and working hours
Companies must pay drivers at least 120% of the state minimum wage for their work hours, plus 30 cents for each mile driven, with the amount adjusted for inflation after 2021. Moreover, under this provision, companies cannot allow you to work more than 12 hours in a 24-hour period unless you take a 6–hour break.
Health care subsidies and accident insurance
If you drive 25 or more hours a week, your employer must provide health care subsidies that cover 82% of the average premium. If you work between 15 and 25 hours a week, they must provide you with subsidies covering 41% of the average premium.
Companies must also provide insurance covering at least $1 million in medical expenses and lost income if you get an injury on the job. They must also give you 66% of your average weekly earnings for up to 104 weeks. Moreover, if a driver dies because of work-related injuries, employers must provide their family with proper compensation.
Safety and anti-discrimination policies
To keep drivers and customers safe, app-based transportation and delivery companies must:
- Have rules against discrimination and sexual harassment.
- Provide training for drivers.
- Enforce a zero-tolerance policy for drugs and alcohol.
- Conduct criminal background checks.
Prop 22 also makes it a misdemeanor crime to pretend to be an app-based driver.
Know your rights
California’s employment laws can change, which can make it hard to know your job classification and the rights you have. If you think your workplace is not giving you the benefits you deserve, don’t wait to seek legal help and advice.