Uber and Lyft roll out new benefits for California drivers under Prop 22

Following their victory final month in California on the Prop 22 ballot measure, Uber and Lyft have unveiled the brand new “advantages” for California drivers on their platforms, together with assured minimal earnings and stipends for well being care.

“Regardless that we’ve received the vote, we’re nonetheless not accomplished,” Uber CEO Dara Khosrowshahi stated in a weblog submit saying the advantages. “In reality, we’ve solely simply begun to enhance unbiased work collectively.”

Gig economic system corporations, together with Uber, Lyft, and DoorDash, spent more than $200 million on the “Sure on 22” marketing campaign. Prop 22 exempts them from AB5, a California state law requiring them to deal with their staff as staff. The businesses stated AB5 would enhance wait occasions and costs for patrons, whereas taking flexibility away from drivers.

Prop 22 permits the businesses to proceed categorizing drivers as unbiased contractors and in addition present some further advantages. Opponents argued that the provisions in Prop 22 weren’t equal to the financial safety of full-time employment.

Below Prop 22, gig staff — together with ride-share drivers — will likely be paid 120 % of California’s minimal wage of $13 per hour, which will increase to $14 per hour in 2021. For ride-share drivers, this is applicable solely throughout lively hours: once they have a passenger of their automobile or are en route to select up a passenger. It requires staff with 15 lively hours per week to obtain a well being care stipend.

Uber’s benefits program requires drivers to be paid at the least 20 % greater than the pickup metropolis’s minimal wage plus 30 cents per mile for bills. That 30 cents per mile doesn’t apply to supply staff on foot or bicycle. Drivers who earn lower than the assured minimal over a two-week interval will likely be paid the distinction mechanically.

Lyft’s pay schedule is similar, with its first assured earnings interval starting on December sixteenth. At each corporations, drivers who earn greater than the assured minimal will preserve all of their earnings — there isn’t a higher restrict. They’ll additionally preserve one hundred pc of their ideas

For well being care, Lyft will present a quarterly well being care subsidy for drivers who drive a mean of at the least 15 hours per week. To qualify, drivers have to supply proof they’re enrolled in a qualifying well being care plan. Uber’s well being care stipend additionally requires a mean of 15 hours per week, and drivers need to show they’re the first policyholder on a qualifying medical insurance plan. Uber drivers obtain 50 % of the stipend — quantity nonetheless TBD — in the event that they common 15 lively hours per week and one hundred pc of the stipend once they common 25 lively hours per week.

Drivers can qualify for the well being care subsidies starting on January 1st.

To cowl the prices of the brand new advantages, Uber stated it could apply a payment of as much as $1.50 to the price of rides and as much as $2 on meal deliveries, the Financial Times reported. Lyft didn’t present particulars on any further buyer charges.

Prop 22 mandates present ride-share drivers obtain security coaching earlier than July 1st, 2021. Drivers who signal on after January 1st will likely be required to finish the security course earlier than they take their first journeys. Drivers may even be required to take breaks of at the least six hours in the event that they drive greater than 12 hours in a 24-hour interval, and they are going to be enrolled in harm safety insurance coverage that covers medical bills, incapacity funds, and survivor advantages.

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