Proposition 22, passed in 2020, changed the rules for app-based drivers. It says drivers for rideshare companies are independent contractors, not employees. This change affects what benefits they can get, including workers’ compensation. These changes are important for gig workers and the people who use their services.
Independent contractor classification and workers’ rights
Proposition 22 lets companies call their drivers independent contractors. This means drivers do not get traditional benefits like workers’ compensation. Instead, the law requires companies to offer some benefits, like accident insurance for injuries on the job and healthcare help for certain workers.
Limits of the benefits offered
The accident insurance from Proposition 22 helps pay for medical bills and disability if a driver gets hurt while working. But these benefits do not cover everything. For example, injuries that happen outside of driving time are not included. Healthcare help only goes to workers who drive a lot of hours, leaving many drivers without support.
Challenges for gig workers
Without full workers’ compensation, gig workers face big financial problems if they get hurt. They have to rely on private insurance, which can be slow or not enough to cover their needs. Many workers also have to deal with legal issues about their job classification, which makes it harder to get long-term protections.
Some people think Proposition 22 protects companies more than workers. Groups are working to change the law to give gig workers better protections, like full workers’ compensation. New laws in the future could make a big difference for gig workers and their rights in California’s growing gig economy.