Drivers as Contractors and Labor Policies (California Proposition 22)
1. What is Proposition 22?
- Proposition 22 (Prop 22) is a ballot initiative, which was passed on November 4th, 2020, allowing app-based drivers to continue to be classified as independent contractors.
2. What are the changes I should expect to see?
- Background checks - Prop 22 requires that all individuals pass a federal and local background check, and ensure that Chowbus has run criminal checks on everyone that participates within the network
- Copies will be provided to every individual upon request
- You are ineligible to drive if convicted of certain crimes (listed in the law text)
- Health Insurance - Beginning January 1, 2021, Chowbus will comply with Prop 22 requirements to provide a healthcare subsidy to qualifying drivers consistent with the average contributions required under the Affordable Care Act (“ACA”).
- Subject to your driving activity on the platform, you will receive payments on a quarterly basis (first payment will be issued after March 31, 2021):
- If you have averaged 25 hours of on trip time or more for the calendar quarter, you will receive 100% of the applicable average ACA contribution.
- If you have averaged at least 15 hours but less than 25 hours of on trip time for the calendar quarter, you will receive 50% of the applicable average ACA contribution.
- Minimum earnings floor - Beginning January 1st, Chowbus will comply with Prop 22 requirements to ensure delivery partners are paid out 120% of minimum wage for all on trip time
- Chowbus will top up weekly earnings for orders conducted each Sunday through Saturday every week on Monday before 10 PM local time.
- EoY mileage payout - By December 31st 2021, Chowbus will comply with Prop 22 requirements to ensure delivery partners are paid out $0.30/on trip mile incurred on the platform
- “on trip mile” matches up to the same as “on trip time”, which is defined below in question 3.
- Transparency - Beginning January 1st, 2021, Chowbus driver app will display the following (in addition to earnings):
- # of miles driven
- # of hours driven (will be displayed in the driver app by March 31st, 2021)
3. What is “on trip time”?
- On trip time refers to the time between accepting a delivery request(s) and completing that delivery request(s)
- On trip time does not refer to:
- Time spent after a delivery request has been cancelled by the customer
- Time spent after a delivery request has been cancelled by the driver
- Time spent that is deemed by Chowbus as fraudulent or unreasonably long for the trip
- Time spent online waiting for a delivery request
- Time spent offline without the Chowbus app enabled
4. What do these changes mean for how my employment relationship is with Chowbus?
- You’ll continue to be classified as an independent contractor. You’ll retain the flexibility of being able to sign on and sign off whenever you wish
5. What is required in order to qualify for health insurance payments?
- Chowbus requires Drivers to submit proof of current enrollment in a qualifying health plan. Proof may include (but is not limited to):
- Health Insurance Membership card
- Health Insurance ID card
- Evidence of coverage and disclosure forms from the health plan or claim forms
- For more information on health insurance in California, visit Covered California.
6. When will health insurance payments be issued?
- Payments will be issued at the end of each calendar quarter:
- March 31st
- June 30th
- September 30th
- December 31st