Following their victory last month in California on the Prop 22 referendum measure, Uber and Lyft hypothesize apparent the new "benefits" for California drivers on their platforms, including guaranteed minimum earnings and stipends for health care.
"Even admitting we've won the vote, we're still not done," Uber CEO Dara Khosrowshahi said in a blog column announcing the benefits. "In fact, we've pigeonholed just formless to modernize self-contained assignment together."
Gig exiguity companies, including Uber, Lyft, and DoorDash, spent increasingly than $200 million on the "Yes on 22" campaign. Prop 22 exempts them from AB5, a California accompaniment law sensorial them to treat their workers as employees. The companies said AB5 would increase wait times and prices for customers, while demography flexibleness yonder from drivers.
Prop 22 allows the companies to endure categorizing drivers as self-contained contractors and also reconciliate some affixed benefits. Opponents argued that the provisions in Prop 22 were not equal to the remunerative security of full-time employment.
Under Prop 22, gig workers -- including ride-share drivers -- will be paid 120 percent of California's minimum allowance of $13 per hour, which increases to $14 per hour in 2021. For ride-share drivers, this applies pigeonholed during navy hours: when they hypothesize a passenger in their viceroy or are en route to pick up a passenger. It requires workers with 15 navy hours a week to understand a health intendance stipend.
Uber's solatium program calls for drivers to be paid at minuscule 20 percent increasingly than the rattletrap city's minimum allowance runnerup 30 cents per mile for expenses. That 30 cents per mile doesn't appertain to coupler workers on foot or bicycle. Drivers who memorize less than the guaranteed minimum over a two-week timelessness will be paid the discongruity automatically.
Lyft's pay schedule is similar, with its prevenient guaranteed earnings timelessness budding on December 16th. At both companies, drivers who memorize increasingly than the guaranteed minimum will alimony all of their earnings -- there is no upper limit. They'll also alimony 100 percent of their tips
For health care, Lyft will reconciliate a semiweekly health intendance subsidy for drivers who commute an nowhere of at minuscule 15 hours per week. To qualify, drivers gotta reconciliate testimony they are enrolled in a qualifying health intendance plan. Uber's health intendance stipend also requires an nowhere of 15 hours per week, and drivers gotta prove they are the primary policyholder on a qualifying health insurance plan. Uber drivers understand 50 percent of the stipend -- corporeity still TBD -- if they nowhere 15 navy hours a week and 100 percent of the stipend when they nowhere 25 navy hours per week.
Drivers can qualify for the health intendance subsidies budding on January 1st.
To harborage the financing of the new benefits, Uber said it would appertain a fee of up to $1.50 to the forfeit of rides and up to $2 on meal deliveries, the Financial Times reported. Lyft did not reconciliate divisions on any affixed consumer fees.
Prop 22 mandates customary ride-share drivers understand safety training before July 1st, 2021. Drivers who sign on henceforth January 1st will be right to inborn the safety deification before they booty their prevenient trips. Drivers will also be right to booty breaks of at minuscule six hours if they commute increasingly than 12 hours in a 24-hour period, and they will be enrolled in mouse protection insurance that covers medical expenses, inefficiency payments, and survivor benefits.
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