Legislation
Proposition 22 App-Based Drivers as Contractors and Labor Policies Initiative
- Country
- United States
- Jurisdiction
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State (State of California)
- Authority
- California voters (through ballot initiative)
- Legislation type
- Statutory act
- Binding
- Yes
- Source
- Visit page
- Date of adoption
- Legal Status
- In force
- Platform(s)
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(Location-based) Delivery, Taxi or ride-hailing
Summary
This Initiative establishes the employment status and labour protections of app-based drivers in California. The Initiative classifies app-based drivers as independent contractors if certain conditions are met. It sets a minimum earnings floor, healthcare subsidies, insurance coverage, and safety training requirements. It also prohibits discrimination and requires written contracts, termination protections, and an appeals process.
Additional provisions may be included in the original Proposition 22 that are not covered in this summary. For complete information, please refer to the full text of the Initiative.
Thematic areas
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SECTION 1. Chapter 10.5 (commencing with Section 7448) is added to Division 3 of the Business and Professions Code, to read: CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES.
(Article 2): App-Based Driver Independence: Nº 7451. Protecting Independence. Notwithstanding any other provision of law, including, but not limited to, the Labor Code, the Unemployment Insurance Code, and any orders, regulations, or opinions of the Department of Industrial Relations or any board, division, or commission within the Department of Industrial Relations, an app-based driver is an independent contractor and not an employee or agent with respect to the app-based driver’s relationship with a network company if the following conditions are met: (...)
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SECTION 1. Chapter 10.5 (commencing with Section 7448) is added to Division 3 of the Business and Professions Code, to read:
CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES (Article 5) Antidiscrimination and Public Safety 7456. Antidiscrimination. (a) It is an unlawful practice, unless based upon a bona fide occupational qualification or public or app-based driver safety need, for a network company to refuse to contract with, terminate the contract of, or deactivate from the network company’s online-enabled application or platform, any app-based driver or prospective app- based driver based upon race, color, ancestry, national origin, religion, creed, age, physical or mental disability, sex, gender, sexual orientation, gender identity or expression, medical condition, genetic information, marital status, or military or veteran status. (...)
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SECTION 1. Chapter 10.5 (commencing with Section 7448) is added to Division 3 of the Business and Professions Code, to read:
CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES (Article 2) App-Based Driver Independence. Nº 7452. Contract and Termination Provisions. (...) (c) Network companies shall provide an appeals process for app-based drivers whose contracts are terminated by the network company.
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SECTION 1. Chapter 10.5 (commencing with Section 7448) is added to Division 3 of the Business and Professions Code, to read:
CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES(Article 9). Amendment. Nº7465 (c) (4) Any statute that authorizes any entity or organization to represent the interests of app-based drivers in connection with drivers’ contractual relationships with network companies, or drivers’ compensation, benefits, or working conditions, constitutes an amendment of this chapter and must be enacted in compliance with the procedures governing amendments consistent with the purposes of this chapter as set forth in subdivisions (a) and (b).
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SECTION 1. Chapter 10.5 (commencing with Section 7448) is added to Division 3 of the Business and Professions Code, to read:
CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES (Article 3). Compensation. Nº 7453. Earnings Guarantee. (a) A network company shall ensure that for each earnings period, an app-based driver is compensated at not less than the net earnings foor as set forth in this section. The net earnings foor establishes a guaranteed minimum level of compensation for app-based drivers that cannot be reduced. In no way does the net earnings foor prohibit app-based drivers from earning a higher level of compensation (...)
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SECTION 1. Chapter 10.5 (commencing with Section 7448) is added to Division 3 of the Business and Professions Code, to read:
CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES. (Article 4). Benefits. Nº 7454. Healthcare Subsidy. (a) Consistent with the average contributions required under the Affordable Care Act (ACA), a network company shall provide a quarterly health care subsidy to qualifying app-based drivers as set forth in this section. An app-based driver that averages the following amounts of engaged time per week on a network company’s platform during a calendar quarter shall receive the following subsidies from that network company: (...)
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SECTION 1. Chapter 10.5 (commencing with Section 7448) is added to Division 3 of the Business and Professions Code, to read:
CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES (Article 2) App-Based Driver Independence. Nº 7452. Contract and Termination Provisions. (a) A network company and an app-based driver shall enter into a written agreement prior to the driver receiving access to the network company’s online-enabled application or platform. (b) A network company shall not terminate a contract with an app-based driver unless based upon a ground specified in the contract. (c) Network companies shall provide an appeals process for app-based drivers whose contracts are terminated by the network company.
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SECTION 1. Chapter 10.5 (commencing with Section 7448) is added to Division 3 of the Business and Professions Code, to read:
CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES (Article 2) App-Based Driver Independence. Nº 7451. Subdivision (a) The network company does not unilaterally prescribe specific dates, times of day, or a minimum number of hours during which the app-based driver must be logged into the network company’s online-enabled application or platform.
SECTION 1. Chapter 10.5 (commencing with Section 7448) is added to Division 3 of the Business and Professions Code, to read:
CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES (Article 5). Antidiscrimination and Public Safety. Nº 7461. App-based Driver Rest. An app-based driver shall not be logged in and driving on a network company’s online-enabled application or platform for more than a cumulative total of 12 hours in any 24-hour period, unless that driver has already logged off for an uninterrupted period of 6 hours. If an app-based driver has been logged on and driving for more than a cumulative total of 12 hours in any 24-hour period, without logging off for an uninterrupted period of 6 hours, the driver shall be prohibited from logging back into the network company’s online-enabled application or platform for an uninterrupted period of at least 6 hours.