When are Prop 22 Payments Due?
It is important to note that Prop 22 payments may have a different frequency than other compensation payments, such as regular paychecks or bonuses. Companies must ensure that they are making Prop 22 payments on the correct schedule and at the correct intervals, to avoid potential legal issues.
California's Prop 22, also referred to as the "App-Based Drivers as Contractors and Labor Policies Initiative," reclassified app-based transportation and delivery drivers as independent contractors, relieving companies like Uber and Lyft of the obligation to provide traditional employee benefits such as minimum wage, overtime pay, and unemployment insurance.
Prop 22 requires companies to provide certain compensation and benefits to their drivers. As a business owner or manager, it is important to understand the frequency of Prop 22 payments and how it may differ from the frequency of other compensation payments. In this blog post, we will discuss how often companies are required to make Prop 22 payments and how it may be at a different frequency than when they pay other compensation.
The frequency of Prop 22 payments can vary depending on the type of payment being made. For example, the minimum compensation amount (MCA) is calculated on a weekly basis. This means that even if a driver works less than a certain amount of hours in a week, the company must pay them the MCA for that week.
On the other hand, the health care subsidy is a monthly payment, so it must be paid to the driver at the end of each month, based on the number of hours worked in the previous month.
It is important to note that these payments may have different frequency than other compensation payments, such as regular paychecks or bonuses. Companies must ensure that they are making Prop 22 payments on the correct schedule and at the correct intervals, to avoid potential legal issues.