OxAvdeenko / iStock.com
A California law designed to improve working conditions for rideshare drivers while also keeping fees down might have done the latter without doing the former, according to a new study from PolicyLink. Among other things, the study found that local Uber and Lyft drivers make a median net wage of $6.20 an hour — well below California’s minimum wage of $15 an hour.
See: What Is the Highest Income for Food Stamps in 2022?
Find: 8 Best Remote Jobs That Pay at Least $50 an Hour
Bonus Offer: Open a new Citi Priority Account by 1/9/23 and earn up to a $2,000 cash bonus after completing required activities.
The study, released on Sept. 21, was the result of a collaboration between PolicyLink — a progressive research and advocacy organization — and Rideshare Drivers United, a California driver advocacy group. Much of the research was done by PolicyLink partner National Equity Atlas, which published the results on its website.
The law in question is Proposition 22, which was approved by voters in 2020. According to National Equity Atlas, Prop 22 allowed rideshare companies such as Uber and Lyft to legally classify their drivers as independent contractors not subject to basic employment protections. This was the case even though drivers cannot set their own fares, or other working conditions traditionally part of independent contractors’ rights.
“In effect, Prop 22 rewrote labor law for California’s entire app-based transportation and delivery workforce,” National Equity Atlas wrote.
To better understand the impact of Prop 22 on driver compensation, National Equity Atlas partnered with Rideshare Drivers United — and 55 rideshare drivers in California’s major rideshare markets — to collect and analyze driver data late last year, using the Driver’s Seat Cooperative mobile app.
The partnership assessed how compensation under Prop 22 compares with what compensation would be if the drivers were classified as employees. It also conducted interviews with a subset of drivers to better understand their working conditions under Prop 22, the challenges they face because of the pay and benefits structure — and the extent to which they feel they have control over their work.
Bonus Offer: Find a Checking Account that Fits Your Lifestyle. $100 Bonus Offer for New Checking Account Customers.
Among the study’s key findings:
- Drivers’ median net take-home earnings, which take out business costs such as vehicle wear and tear, are $6.20 per hour under Prop 22. Drivers who pay for health insurance out of pocket earn nearly half of that.
- The wage floor under Prop 22 is $4.10 per hour.
- Drivers would earn nearly $11 more per hour if they were classified as employees.
- Rideshare work has become less flexible and more controlled by …….