BLOG

Proposition 22, aka the App-Based Drivers as Contractors and Labor Policies Initiative, was voted into California law.

Proposition 22

Proposition 22 was on the California ballot for the November 2020 election. It essentially overrides Assembly Bill 5 and continues to define app-based drivers as independent contractors instead of employees. The proposition passed with just over 58% of the vote.

According to the California General Election Guide, the passing of 22 means drivers can “decide when, where, and how much to work but would not get standard benefits and protections that businesses must provide employees.”

Controversy

This Proposition was hotly debated because employees have different benefits than contractors. It was heavily sponsored by corporations such as Uber, Lyft and DoorDash. Opponents believed it to be a misleading initiative that prevents drivers from obtaining certain employee benefits.

Proponents argue most drivers want the flexible schedule that comes with being an independent contractor. Before the election, corporations like Lyft also stated that if 22 failed, then 90% of app-based driving jobs could disappear and leave many people without the ability to earn extra income.

What This Means For App-Based Drivers In CA

App-based drivers in California will continue to be independent contractors. They could, however, be deemed employees if a corporation:

• Sets their hours.
• Specifies which jobs they accept.
• Prohibits them from working for other companies.

As contractors, drivers aren't eligible for minimum wage, unemployment insurance and overtime. Proposition 22 created some benefits that did not previously exist for drivers, including:

Health coverage. According to the proposition:

“For an average of 25 hours or more per week of engaged time in the calendar quarter, a payment greater than or equal to 100 percent of the average ACA contribution for the applicable average monthly Covered California premium for each month in the quarter.”

“For an average of at least 15 but less than 25 hours per week of engaged time in the calendar quarter, a payment greater than or equal to 50 percent of the average ACA contribution for the applicable average monthly Covered.”

Earnings. Drivers will be eligible to:

• Earn 120% of the local minimum wage.
• Receive 100% of tips.
• Be entitled to minimum earnings.

Insurance. Drivers may qualify for coverage of medical expenses incurred and disability payments equal to “66 percent of the app-based driver’s average weekly earnings from all network companies as of the date of injury, with minimum and maximum weekly payment rates to be determined in accordance with subdivision (a) of Section 4453 of the Labor Code.”

Learn more about Proposition 22.

Background Checks For Drivers

Background screening for app-based drivers is an ongoing topic throughout the U.S. People became concerned following reports of criminal offenses allegedly committed by workers while on the job. This caused a public outcry for stronger screening policies.

Individuals who work directly with the public should be thoroughly screened before being brought on as employees or contractors. It’s also advisable to maintain ongoing monitoring that shows an employer if a worker incurs a new criminal record.

Hiring?

If you’re hiring, then background checks should be part of your process. The team at Backgrounds Online can help you customize screening packages that are ideal for any position. For example, if a worker will drive while on the job, then the background check should include a Motor Vehicle Records Search.

Our team is available to assist you Monday through Friday from 5am to 6pm PT. Contact us now for fair, compliant reports that help you make informed decisions.