People in California will begin to see the effects of Proposition 22 this week, with the ballot measuring 58% of the state’s voters in November.
The measure exempts app-based, on-demand companies from California labor law and classifies gig workers as independent contractors rather than employees. Ride-highling drivers and app-based delivery workers will see some benefits in salary and benefits, but not full employee protection.
Some companies – who together spent more than $ 200 million to pass Proposition 22 – now say they will raise rates for customers. Uber Technologies Inc. UBER,
Is calling the increase on every ride and distributes a “California Driver Benefit Fee” which it said will vary depending on the cost of operating in different markets. Dordash Inc. DAS,
This is a “modest percentage increase in service charges”, while Lyft Inc. LYFT,
And on Monday Instacart did not answer questions about raising rates and fees.
See: Uber and Lyft fight to keep drivers in California as contractors
Gig Workers Rising, a labor group that opposed Proposition 22, called the increase in consumer rates “corporate bait and switch” on Monday, saying in a statement that “Uber and other app corporations during their Proposition 22 campaign Said time and again. ” If the measure fails to pass, riders can expect higher rates. Now when Prof. 22 has passed, with Uber announcing that the rider will have to bear the increased costs after all. ”
Drivers for Uber and Lyft, and delivery workers for DoorDash and Instacart, will start this week to earn a guaranteed earnings equivalent to 120% of the minimum wage during their busy or booked time – waiting for passengers or deliveries Turns out time doing – companies said on Monday. They will receive 30 cents for each booked mile, and will be covered by occupational accident insurance for injuries on the job.
In addition, workers who log in at least 15 hours a week will be eligible for subsidies for use for health insurance. 1 January
The company said Lyft would review its drivers’ earnings and ensure that if they met less than the guaranteed amount, the difference would be made. The review will be biweekly, and suggestions will not count towards the income guarantee. Health care subsidies will be paid quarterly, Lyft and Instacart said.
Dordash stated shortly after Prop. 22 that he had previously expected to pay health care subsidies in April 2021.
In addition, on Monday Gig Workers Rising announced an app for workers meant to help workers understand the benefits they are entitled to under the proposal. 22. The app, which will be available on January 11, will allow workers to provide information about salaries and benefits. The group stated that “it would show that the benefits offered by Proposition 22 are completely inadequate.”