Prop 22 is a step in the right direction in that it sets some boundaries that protect those who need basic protection, but there's still a lot we don't know about it.(Photo: Shutterstock)
After a $200 million-plus investment, an aggressive commercial campaign and extensive lobbying, the trailblazing, Prop 22 decisively passed with a 58% majority vote in California. Once this proposition goes into effect, here's what we know will happen so far, according to the LA Times:
|- Companies like Uber, Lyft and Doordash will be required to provide an hourly wage equal to 120% of local or state minimum wage requirements for time spent on rides
- Workers driving at least 15 hours a week will be granted a stipend for health insurance coverage (for those putting in 25 hours a week, the stipend will be larger)
- Drivers will get access accident insurance to help cover injuries sustained on the job, including disability benefits and medical expense coverage
The passage of Prop 22 essentially means gig workers will still be considered independent contractors in the state. It also exempts gig companies like Uber, Lyft and DoorDash from AB-5, the gig worker bill that was enacted in January of 2020.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
