A Checklist for Ensuring You Are Prop 22 Ready
Here's a checklist of processes that business owners should have in place to ensure compliance with Prop 22 and avoid potential legal issues.
As a business owner in the app-based transportation and delivery industry in California, it's important to understand and comply with Prop 22, also known as the "App-Based Drivers as Contractors and Labor Policies Initiative." This law changes the classification of app-based transportation and delivery drivers from employees to independent contractors and it affects companies like Uber, Lyft, DoorDash, Instacart, and Postmates.
One of the most important things for business owners to know is that non-compliance with Prop 22 can lead to legal issues, such as lawsuits from drivers or the state of California. In this blog post, we will provide a checklist of processes that business owners should have in place to ensure compliance with Prop 22 and avoid potential legal issues.
- Understand the requirements of Prop 22: Make sure you are familiar with the requirements of Prop 22, including the minimum compensation amount (MCA) and health care subsidy.
- Keep accurate records: Keep accurate records of the hours worked by drivers and the compensation and benefits provided to them. This will be important in case of an audit or lawsuit.
- Calculate the MCA correctly: Make sure that you are correctly calculating the MCA, based on the state minimum wage and expenses.
- Pay the MCA and health care subsidy on time: Make sure that you are paying the MCA and health care subsidy on time, as required by Prop 22.
- Provide clear communication: Provide clear communication to drivers about their compensation and benefits under Prop 22.
- Stay informed about changes: Stay informed about any changes or updates to Prop 22, as the regulations are still being developed.
- Consult with legal professionals: Consult with legal professionals to ensure compliance with Prop 22 and avoid potential legal issues.
Business owners can use this checklist as a guide to ensure compliance with Prop 22 and avoid potential legal issues. By understanding the requirements of the law, keeping accurate records, and staying informed about changes, business owners can protect themselves and their companies.