In this post, we will discuss what Prop 22 or Proposition 22 is in Uber Eats. We will also be looking at the various requirements that Proposition 22 stipulates. Finally, we will describe the different advantages and disadvantages that Proposition 22 brings to the Uber Eats drivers as well as other patrons of the food-delivery app.
What is Prop 22 or Proposition 22 in Uber Eats?
Prop 22 or Proposition 22 in Uber Eats, is an initiative that was passed in November 2020 in order to bring certain benefits for drivers who work for On-Demand transport and On-Demand delivery apps. It also classifies delivery drivers and On-Demand drivers as independent contractors which mean that they are not employees or even part—time employees.
Proposition 22 came in to being due to a multitude of reasons, but mostly because the delivery drivers for On-Demand apps do not have any employee benefits and perks such as health insurance or overtime pay. They also are not guaranteed a certain amount of earnings and thus their income can be high one day and very low another.
This proposition aims to protect not only the gig worker, the independently contracted delivery driver, but also the company itself and thus got a nod from both these parties. However, consumers had to pay the price as they are now required to pay extra in order to avail rides and services from Uber, Lyft, Postmates and other delivery companies.
Requirements of Proposition 22
Proposition 22 stipulates certain requirements from the company that has independently contracted these delivery drivers. Some of the requirements that need to be met by the company have been explained in this section.
- The delivery drivers in Uber Eats are paid according to the difference between their total earnings, which does not include tips, and their net earnings based on 120% of the minimum wage in the state for any hours worked plus 30 cents for every engaged mile. This also requires to be adjusted for inflation after 2021
- The delivery driver has a twelve-hour limit on their working hours for a period of 24 hours. However, there is an exception if the driver has been logged for six hours continuously
- The company also needs to provide healthcare subsidies for the delivery drivers, which is equal to 82% of the average California Covered premium for each month. This is only for those delivery drivers who work for a minimum of 25 hours per week during any calendar quarter
- For those delivery drivers who are only working between 15 and 25 hours per week for a calendar quarter, the company needs to give healthcare subsidies which is equivalent to 41% of the average California Covered premium
- The delivery drivers for On-Demand delivery apps like Uber Eats, are now covered by accident insurance from the company for a minimum of $1 million which will cover medical expenses as well as the loss of income due to their injuries
- In case of an accident happening when the delivery drive is online and logged in to the Driver’s app, they can get disability payments that will match 66% of the average weekly earnings of a delivery driver which they have earned in the four weeks prior to the accident
- The company must also provide accidental death insurance for the delivery driver’s spouse or children or any other dependents in case the delivery driver dies while using the On-Demand app
- Furthermore, Proposition 22 recognizes the impersonation of an app-based driver as a misdemeanor
- Finally, the company needs to develop certain policies against sexual harassment and discrimination. In addition to this, the company also needs to conduct training programs for its drivers on topics such as driving, accidents, and even reporting sexual assaults or sexual misconducts
Advantages of Proposition 22
Proposition 22 came into existence due to a variety of forces that called for the better treatment of delivery drivers. Some of the advantages or plus points of Proposition 22 for the various parties involved have been described as follows.
- Delivery drivers can enjoy plenty of benefits just like full-time employees in the company and also have a minimum earnings guarantee. This was not present before Proposition 22
- The delivery driver gets more freedom while working for On-Demand delivery apps like Uber Eats as they are classified strictly as independent contractors. They can thus, set their own hours while working for the app and can also choose to take a break whenever they want to
- The delivery drivers now have access to compulsory training programs which can make it even safer for customers to use the services of the app
Disadvantages of Proposition 22
While there are certainly many advantages in Proposition 22, there are several disadvantages or minus points. Some of these are,
- Delivery drivers for these On-Demand delivery apps are still not considered employees and thus cannot enjoy all the benefits under the state labor law
- According to this Proposition, the delivery drivers are not guaranteed a minimum wage
- The prices of the services from these apps have been increased to match the costs for the company, and thus the public now have to pay extra to use the delivery services of the app
In this post, we have discussed what Prop 22 or Proposition 22 is in Uber Eats. We have also looked at the various requirements that Proposition 22 stipulates. Finally, we have described the different advantages and disadvantages that Proposition 22 brings to the Uber Eats drivers as well as other patrons of the food-delivery app.
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