Postmates and other app based gig drivers have reason to celebrate today as Proposition 22 has easily passed with 58 percent of voters voting "Yes on 22." The victory allows app based gig companies such as Postmates, Doordash, Uber and others to keep their drivers classified as independent contractors. With the passing, drivers will also be entitled to a guaranteed pay amount, mileage reimbursement and insurance benefits.
Better pay for Postmates drivers with the passing of Prop 22?
The new ballot guarantees Postmates drivers, as well as all other gig based drivers, that their earnings will be 120 percent of whatever minimum wage is. Currently, minimum wage in California is $13 per hour. Beginning January 1, 2021, the minimum wage will be $14 per hour, and at the start of 2025 the minimum wage will be $15. For many Postmates drivers, this means that they will earn more than they ever have.
Using today's minimum wage of $13 per hour, this means that with the passing of the ballot, drivers will now be guaranteed $15.60 per hour, and this is not including mileage reimbursement (which is another benefit of the ballot) or customer tips which can easily turn the hourly wage in to $20 per hour or more. As it has always been, Postmates drivers can earn as much as their efforts bring them, but it certainly is nice knowing that there will now be a guaranteed minimum.
The catch of the Prop 22 guaranteed minimum pay
The "Yes on prop 22" ballot guarantees that drivers will earn at least 120 percent of minimum wage, but that doesn't mean that a driver can be sitting around in a parking lot somewhere waiting for a call earning money for nothing. There is a catch to the 120 percent guaranteed minimum pay. A driver must be active. The Postmates driver must be on a call. That means that a driver will only be earning the guarantee from the time that they accept a call to the time that they end the call.
When we call this a catch, it seems like a negative thing, but in reality it's not. Postmates, as well as other similar apps will keep their drivers busy most of the time. Sure, there's a little down time here and there, but for the most part gig drivers are always on the go. It certainly will be nice knowing that the least that you can earn in an active hour is $15.60 plus mileage and tips.
Other benefits with the passing of Prop 22
When it came to Prop 22, the most important thing for gig drivers was the flexibility that they have always enjoyed. Nobody wanted to lose that freedom. After that, the next important thing was pay. Even though the state was offering app based drivers a minimum wage guarantee as an employee whether they were actively driving or not, the "Yes on 22" initiative countered that with a 120 percent of minimum wage guaranteed pay along with continued flexibility which seemed much more attractive to most gig drivers.
There are other benefits that come along with the passing of Prop 22. Healthcare subsidies will now be offered to all gig drivers. Benefits and the percentages vary depending on how many hours a week a gig driver works. For example, those that work an average of over 25 hours per week will be entitled to 82 percent the average California covered premium for each month. Those that work less hours are still entitled to this benefit at a lower percentage.
Occupational accident insurance and death insurance are also part of the package. Drivers that are injured while performing their job will have medical expenses paid for beginning at one million dollars. If death were to occur while on the app, the worker's family or dependents will also now be entitled to death benefits.
Thank God that Proposition 22 passed
I'm glad that all of this Prop 22 stuff is over. It's not that I was worried about the initiative not passing, it's just good to be done with it. I always knew that there was only maybe a one percent chance of it not passing, and that was being nice about it.
All in all, us gig drivers should be grateful that all of this happened because it only helped us out. If California would have never attacked these app based gig economy companies, Postmates and company would not have ever had to entice everybody to vote yes on 22 by offering more money and more benefits. It worked out well for us and will make delivering food for Postmates or any other food delivery app that much more enjoyable.
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