This week, Californians will begin to see the effects of Proposition 22, which 58% of state voters passed in November.
The move exempts utility-based, on-demand companies from California labor law and classifies kick workers as independent contractors instead of employees. Ride-hailing drivers and utility-based delivery workers will see some benefits in pay and benefits, but will not see full employee safety.
Some companies – which spent more than $ 200 million to implement Proposal 22 – now say they will raise fees for customers. Uber Technologies Inc. UPR,
The increase in each ride and delivery is called the “California Driver Benefit Fee”, which is said to vary depending on the costs of operating in different markets. Door Dash Inc. Dash,
It is said to be raising service charges, while Lift Inc. LYFT,
And on Monday Instagram did not mention questions about raising rates and fees.
See: Uber and elevator succeed in keeping drivers as contractors in California
KickWorkers Rising, a working group that opposed Proposal 22 on Monday, said in a statement that the rise in consumer rates was “a corporate bait and switch”: 22 said again and again during the campaign. If the move fails, riders can expect higher fares. Now that Prop 22 has passed, Uber announces that riders will have to accept increased costs. ”
Uber and lift drivers, as well as delivery workers for Instagram, will begin this week to receive guaranteed returns equal to 120% of the minimum wage at the time they engage or book – which excludes the time they wait for passengers or deliveries – the companies said Monday. They will receive 30 coins for each mile booked, and they will be covered by occupational accident insurance for injuries sustained while on duty.
In addition, workers who sign up at least 15 hours a week will be eligible for health insurance benefits on January 1st.
The company said the lift would review its drivers’ earnings and make a difference if it was less than the warranty amount. The review takes place over two weeks, and the tips do not count as a revenue guarantee. Lift and Instagram say health care subsidies will be paid on a quarterly basis.
Tordash has not yet responded to a request for details on Monday, but said it would implement the first health care subsidy in April 2021, following the completion of Prop 22.
On Monday, KickWorkers Rising announced an application for workers to help workers understand the benefits available to them under Prop 22. Available on January 11, the application will allow workers to provide information on pay and benefits. The panel said it would “show that the offers made by Prop 22 are completely inadequate.”