What is Prop 22? A Beginners Guide

Are you a business owner in the app-based transportation and delivery industry in California? If so, you may have heard about 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.

So, you might be wondering what the heck is Prop 22 and how it affects your business? Well, let me break it down for you.

Prop 22 first came about in 2020 as a ballot measure in California. A group of app-based transportation and delivery companies proposed it with the goal of creating a new classification for drivers, known as "app-based drivers," who would be considered independent contractors and not employees. This means that companies like yours wouldn't have to provide traditional employee benefits like minimum wage, overtime pay, or unemployment insurance to their drivers.

Now, here's the thing: Prop 22 is a new law and the regulations are still being developed. The California Labor Commissioner's office and the California attorney general's office are working on the implementation of the law, so there may be more guidance coming soon.

But what does this mean for you as a business owner? Well, you'll need to comply with the new requirements for compensation and benefits for your drivers. And don't worry, the state is working to make it as smooth as possible for you.

In short, Prop 22 is a new law that affects companies that provide app-based transportation and delivery services in California. As a business owner, it's important to stay informed about how it's evolving, and be prepared to comply with the new requirements for compensation and benefits.