Not only are gig companies gouging workers and consumers, but traditional firms are benefiting from the substandard labor regime as well.
Prop 22 “guarantees” certain benefits, including completely undefined “assistance” with health care premiums and disability coverage for those injured on the job. Drivers are guaranteed an hourly wage at least 120 percent of the local minimum. But that only kicks in during time spent driving, while waiting for or getting to a ride or a delivery, which can be as much as 37 percent of the time spent on the job, remains uncompensated.
One study by UC Berkeley’s Center for Labor Research and Education found that Uber and Lyft would have had to pay more than $400 million over the last five years into California’s unemployment insurance fund if their drivers were classified as employees.
Not only are gig companies gouging workers and consumers, but traditional firms are benefiting from the substandard labor regime as well.
Prop 22 “guarantees” certain benefits, including completely undefined “assistance” with health care premiums and disability coverage for those injured on the job. Drivers are guaranteed an hourly wage at least 120 percent of the local minimum. But that only kicks in during time spent driving, while waiting for or getting to a ride or a delivery, which can be as much as 37 percent of the time spent on the job, remains uncompensated.
One study by UC Berkeley’s Center for Labor Research and Education found that Uber and Lyft would have had to pay more than $400 million over the last five years into California’s unemployment insurance fund if their drivers were classified as employees.
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