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Does California Law Have Special Rules For App-Based Delivery Drivers?

In 2020, California Proposition 22, the App-Based Drivers as Contractors and Labor Policies Initiative, was on the ballot in California and was voted into law. This law would define certain app-based transportation (rideshare) and delivery drivers as independent contractors. However, Proposition 22 also provided specific labor and wage protections for these app-based drivers.

Who is an app-based transportation (rideshare) and delivery driver under Proposition 22?

Proposition 22 applies only to “app-based drivers,” who are work for a “Delivery Network Company,” “Delivery Network Company Courier,” or “Charter Party Carrier of Passengers”:

  • Delivery Network Company – a business operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
  • Delivery Network Company – a business entity that maintains an online-enabled application or platform used to facilitate delivery services within the State of California on an on-demand basis.
  • Charter Party Carrier of Passengers – means every company engaged in the transportation of persons by motor vehicle for compensation, provided the driver is providing rideshare services using a passenger vehicle thorough an online-enabled application or platform.

Generally, Proposition 22 does not apply to taxicab or limousine.

If you use your personal vehicle to transport individuals or goods for an app-based service, Proposition 22 may apply to you.

What does Proposition 22 provide for drivers?

Despite being classified as “independent contractors,” app-based drivers do receive some protections under Proposition 22. Proposition 22 provides that drivers receive at least 120 percent of the local minimum while actively driving (when actually driving a person or delivering to their destination). Drivers also receive 0.30 reimbursement per engaged mile (this amount may increase with inflation) and health care stipend for those who work more than 15 hours per week.

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