Prop 22 Explained: What California Gig Drivers Get
What Uber, Lyft, DoorDash and Instacart drivers are guaranteed in California: the earnings floor, mileage pay, health stipend and accident insurance.
Proposition 22, approved by voters in 2020, keeps rideshare and delivery drivers who work through apps as independent contractors, but guarantees them an earnings floor: 120% of the minimum wage for engaged time plus $0.37 per engaged mile (2026 rate), checked every pay period. It also requires a health care stipend for drivers who average 15 or more engaged hours a week, and occupational accident insurance.
Who it covers
App-based drivers for rideshare and delivery "network companies" (Uber, Lyft, DoorDash, Instacart and similar) who choose their own hours and can work for other platforms. The California Supreme Court upheld the measure in Castellanos v. State of California (July 2024), so these drivers are not employees under the AB5 ABC test. It doesn't cover other gig work, such as freelancing on platforms that aren't rideshare or delivery; for that, see the ABC test guide.
The earnings floor
For each earnings period (set by the company, up to 14 days), the company adds up your net earnings and compares them with your net earnings floor:
- 120% of the applicable minimum wage for every hour of engaged time. The applicable wage is the state minimum or, if the passenger or order was picked up in a city or county with a higher general minimum wage, that local rate.
- Plus $0.37 for every engaged mile driven in your own vehicle. The rate started at $0.30 in 2021 and the State Treasurer adjusts it for inflation each year.
If your earnings for the period come in under the floor, the company must pay the difference no later than the next pay period. The floor is an average over the whole period, so an individual trip can pay less as long as the period total clears it.
Engaged time runs from accepting a request to completing it. Time waiting for requests doesn't count, and neither does time on a trip the customer cancels or the driver abandons. Net earnings exclude tips, tolls, cleaning fees, airport fees and other pass-throughs, but can include incentives and bonuses.
A worked example
A driver logs 30 hours of engaged time and 450 engaged miles in a two-week period:
| State minimum wage ($16.90) | San Francisco pickups ($19.61) | |
|---|---|---|
| Time: 30 hrs × 120% of minimum wage | $608.40 | $705.96 |
| Miles: 450 × $0.37 | $166.50 | $166.50 |
| Earnings floor for the period | $774.90 | $872.46 |
If the driver's fares and bonuses for the period (tips excluded) were $600, the company would owe a top-up of $174.90 at the state rate. Spread over all the hours a driver is logged in, including waiting, the effective hourly pay is lower than the 120% figure suggests.
Health care stipend
Drivers enrolled in a qualifying health plan get a quarterly payment based on average engaged hours per week in the quarter:
- 25+ hours a week: at least 100% of the average ACA contribution for the average Covered California bronze premium.
- 15 to under 25 hours: at least 50% of it.
The company can ask for proof of enrollment; you have at least 15 days after the quarter ends to send it, and the payment is due within 15 days after that. Hours on different apps aren't combined, but you can receive a stipend from more than one company for the same quarter. You may also qualify for Covered California premium help; see how Covered California subsidies work.
Insurance and other protections
- Occupational accident insurance while online: medical expenses up to at least $1,000,000, and disability payments of 66% of average weekly earnings for up to 104 weeks.
- Accidental death insurance for a driver's dependents.
- Tips must go to the driver in full, without card-processing deductions.
- Companies can't deactivate or refuse to contract with drivers for discriminatory reasons, must have a sexual harassment policy, and must give drivers safety training.
What Prop 22 doesn't give you
- No overtime, paid sick leave, unemployment insurance or workers' compensation, since drivers aren't employees.
- No SDI or Paid Family Leave unless you buy elective coverage; see the self-employment tax guide.
- No tax withholding. You pay self-employment tax and income tax yourself, usually through estimated payments.
Check your pay
The Prop 22 Gig Worker Earnings Calculator works out your floor for a pay period and shows whether you're owed a top-up. It uses the state minimum wage, so add the difference if most of your pickups are in a city with a higher rate.
Frequently Asked Questions
What is the Prop 22 minimum pay?
For each pay period, a driver's earnings (not counting tips) must be at least 120% of the applicable minimum wage for every hour of engaged time, plus $0.37 for every engaged mile in 2026. At the state minimum wage of $16.90, the hourly part is $20.28.
Does waiting time count under Prop 22?
No. Only engaged time counts: from accepting a ride or delivery request to completing it. Time spent online waiting for a request, and time on trips the customer cancels or the driver abandons, is not included.
Are tips counted toward the Prop 22 earnings floor?
No. Tips, tolls, cleaning fees, airport fees and other pass-through amounts are excluded, and companies must pass tips to drivers in full. Incentives and bonuses can count toward the floor.
Do Prop 22 drivers get health insurance?
Not coverage itself, but a quarterly stipend if you're enrolled in a qualifying plan: at least 100% of the average ACA contribution toward an average Covered California bronze plan if you average 25+ engaged hours a week, or 50% at 15 to 25 hours.
Is Prop 22 still valid?
Yes. The California Supreme Court upheld it in Castellanos v. State of California in July 2024, so drivers for app-based rideshare and delivery companies remain independent contractors with these guarantees.
This article is for general information only and is not legal or tax advice. Sources: Business and Professions Code 7448-7467 (Proposition 22, 2020), especially 7453 (earnings guarantee), 7454 (health care subsidy), 7455 (insurance) and 7463 (definitions); California State Treasurer per-mile compensation releases; Castellanos v. State of California (Cal. Supreme Court, July 25, 2024).