California Prop 22: What you need to know

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With Prop 22 passing in California, you can continue to enjoy the flexibility and independence of your Roadie side hustle, with more peace of mind.

Proposition 22 became effective in California on December 16, 2020. With the passage of this historic legislation, eligible Roadies across the state now enjoy higher earnings, civil rights protections, injury protection, and access to stipends to pay for healthcare.

If you’re a Roadie driver in California, you will now be:

  • Entitled to a Minimum Earnings Guarantee
  • Protected by our Injury Protection Insurance policy when you’re on an active Gig
  • Eligible for a stipend to help cover the cost of healthcare at the end of each calendar quarter in which you qualify for benefits. You can read more about these eligibility requirements below.
  • Subject to new requirements, including:
    • Taking a 6-hour break if you deliver Roadie Gigs for more than 12 hours in a 24-hour period
    • Completing a new state-mandated safety course before offering on any Gig originating in California
    • Reviewing Roadie’s Discrimination and Sexual Harassment Policy

Here’s what you need to know about these important Prop 22 mandates:

  1. Minimum Earnings Guarantee
  2. Mandatory Breaks
  3. Safety Courses
  4. Discrimination and Sexual Harassment Policy
  5. Healthcare Stipend and Eligibility Requirements
  6. Injury Protection Insurance

1. Minimum Earnings Guarantee

As a Roadie driver in California, you’ll continue to enjoy the flexibility and control to choose when, where, and how you drive. No matter what you choose, your payment can only go higher with the Minimum Earnings Guarantee.

What stays the same:

  • You’ll continue to receive 100% of the amount customers tip 
  • Whenever you complete a Gig, you’ll still be able to choose between the standard weekly payout and Instant Pay. Whichever you choose, you’ll see the details of all your earnings, tips, and adjustments in the Gig History in your Roadie app. 
  • You’ll get a 1099-MISC form in any calendar year when you earn at least $600, just as you do today.

What’s new:

  • With the Minimum Earnings Guarantee, you’ll earn at least 120% of minimum wage (based on the local minimum wage at the pickup location) for your engaged time, plus $0.30 per mile. Engaged time and mileage are estimated from the time you tap "Start Gig" in the Roadie app and head to pick-up until the time you tap "Complete Delivery" at the dropoff location. If you earn more than the guaranteed minimum, you’ll always keep the extra earnings. Plus, you’ll always keep 100% of your tips, which are above and beyond the guaranteed minimum. 
  • At the end of each earnings period, if your Roadie earnings are less than your guaranteed earnings for the period, Roadie will adjust your total earnings in that period to make up for the difference. There’s nothing you need to do to get the adjustment; the extra payments are added automatically to your payouts and you’ll see that payment listed as a Minimum Earnings Adjustment in your in-app dashboard and your California Earnings Statement. 

Every two weeks, you’ll receive an email with your California Earnings Statement, detailing your total engaged time and earnings for that Earnings Period (14 calendar days), including all Gig payments, mileage payments, reimbursements, gratuities and any guaranteed earnings adjustments. 

What you’ll see:

Let’s say the minimum wage in all the California pickup locations where you drove is $15/hr. Here’s how your guaranteed earnings are calculated: 

Engaged time in current Earnings Period: 10 hours
Total mileage driven for all Gigs in current Earnings Period: 200 miles  
Your actual earnings for all Gigs in the current earnings period: $200
You earned $50 in customer tips

With the Minimum Earnings Guarantee, your total guaranteed earnings for the earnings period is:

Engaged Time X Minimum Wage X 120% 
= 10 hours X $15 minimum wage X 1.2 (120%) = $180
Engaged Miles X .30 per mile
= 200 miles X . 30 = $60

Total Engaged Time and Mileage = $240

If the amount of your Gig earnings (not including customer tips) is less than the Minimum Earnings Guarantee, you will be paid the difference of the Guaranteed Earnings - Gig Earnings or in this case $240 - $200 = $40 .  Of course, you will still receive 100% of the customer tips you earned, in this case, $50. Customer tips are never part of the minimum earnings calculation.

Guaranteed Earnings FAQs:

How are “engaged time and mileage” calculated?

Engaged time and mileage are counted from the time you tap "Start Gig" in the Roadie app and head to pick-up until the time you tap "Complete Delivery" at dropoff. Because Roadie gives you the flexibility to choose when and where you want to drive, you always have the flexibility to make other stops along your suggested route -- as long as you arrive at pickup by the designated time shown in your Roadie app. 

For that reason, Roadie calculates engaged time and mileage based on your total estimated drive time and mileage as provided by a third-party service plus your actual wait time at the pick-up and delivery locations. 

For multi-delivery Gigs, engaged time is estimated from the time you tap "Start Gig" and start driving to the first stop and ends when you tap "Complete Delivery" at the final stop. As with single-delivery Gigs, the actual time spent at each pickup and drop off location will be included in your pay.  

Is there a minimum number of deliveries I need to complete each week to qualify for the Prop 22 Minimum Earnings Guarantee? 

No. Every Gig you complete qualifies for Prop 22 guaranteed minimum earnings.

If I’m eligible for a Minimum Earnings Guarantee adjustment, when will I receive it? 

At the end of each 14 day earnings period, any Minimum Earnings Adjustment will be added to your payout balance and will be included in your next payout.

If I’m driving for Doordash and for Roadie, do I get a separate Minimum Earnings Guarantee from each?

Yes. Under Prop 22 all Gig economy companies are required to make sure anyone providing services on their platform receives a Minimum Earnings Guarantee for each completed delivery.

Will I still be reimbursed for tolls and parking fees?

Yes. Nothing will change with respect to reimbursement for tolls and parking fees.

Are Minimum Earnings Guarantee adjustments taxable?

The amount of any Minimum Earnings Guarantee adjustment is taxable income and will be reported by Roadie on a 1099-MISC form or other applicable forms as required by law.

We recommend using a free filing service like TurboTax to help you better understand your annual earnings and potential deductions, or seeking guidance from a qualified tax professional.

What happens if I complete both California and non-California Gigs in an earnings period?

Only Gigs with pickup locations in California are subject to Prop 22, so your California Earnings Statement will only show information for your California Gigs, and only California Gigs are counted towards your Minimum Earnings Guarantee for a given earnings period.

2. Mandatory Breaks 

Under Prop 22, you’ll be required to take an uninterrupted 6-hour break if you drive a total of more than 12 hours of engaged time on the Roadie platform within any single 24-hour period. This is for your safety and the safety of others. 

What stays the same:

  • You can still choose which Gigs you want to offer on.

What’s new:

  • Once you’ve driven 12 hours of engaged time in a single 24-hour period, you’ll be unable to offer on any Gig which has a pickup time within the next 6 hours. If you do attempt to offer on a Gig during this rest period, your offer will not be considered for matching.

Mandatory Break FAQs: 

How do you calculate the 12 hours of engaged time?

Your engaged time for any single-delivery Gig is estimated from the time you tap "Start Gig" and head to the pickup location until you tap "Complete Delivery", plus your actual wait time at pickup and dropoff. For multi-delivery Gigs, engaged time is estimated from the time you tap "Start Gig" and start driving to the first stop and ends when you tap "Complete Delivery" at the final stop. As with single-delivery Gigs, the actual time spent at each pickup and drop off location will be included in your pay. If your total engaged time reaches 12 hours in any given day, you must take a 6-hour break.

3. Safety Courses 

Under Prop 22, in order for you to offer on Gigs with a pick-up location in California, you must complete an online safety course on safe driving, food safety, and recognition of sexual harassment. If you’re a new driver in California, you’ll need to complete the state-required courses prior to offering on your first Gig. 

If you're a driver currently driving in California who began driving prior to January 1, 2021, you’ll have until July 2021 to complete the mandatory safety courses. We're working to make the courses available in early 2021, so stay tuned for details.

Safety Course FAQs

How do I get information about the course?

The mandatory safety course will be available to all drivers in the Roadie app. If you are a new driver in California, you’ll see the training during your initial registration process. You must complete the training at the time of sign-up in order for your registration to be processed. Beginning in February 2021, the training will be available to all California drivers in the Roadie app. 

I’m a current California driver, what if I don’t complete the courses before the required deadline?

If you don’t complete the required courses before the deadline of July 1, 2021, you will no longer be able to offer on Gigs in California until you complete the training. 

4. Discrimination and Sexual Harassment Policy  

In order to drive on the Roadie platform in California, you must also review Roadie’s Discrimination and Sexual Harassment Policy before offering on your first Gig. You can learn more about those policies here .

5. Healthcare Stipend

Starting on Jan 1, 2021, if you’re an eligible driver in California with a qualifying healthcare plan and complete an average of at least 15 hours of engaged time per week throughout the calendar quarter, you will receive a stipend to help pay for healthcare.

You must be the primary policyholder in order for your healthcare plan to qualify. Medicare, Medicaid, and employer-sponsored plans do not qualify. 

Who’s Eligible?

In order to quality, California drivers must:

  • Be enrolled in a qualifying health plan; AND 
  • Drive an average of 15 hours of engaged time per week within each calendar quarter. A quarter is a period of three consecutive months (e.g., January, February, and March). 

If you drive on the Roadie platform an average of: 

  • 15 to 24.9 hours of engaged time per week in a given calendar quarter, you’ll receive at least 50% of the average ACA contribution of the posted  premium (as set by Covered California) as a Healthcare Stipend.*  
  • 25 or more hours of engaged time per week in a given calendar quarter, you’ll receive at least 100% of the average ACA contribution of the posted premium (as set by Covered California) as a Healthcare Stipend.* 

Your healthcare stipend will be paid within 15 days of the end of every quarter. You’ll be able to track hours worked per quarter in your bi-weekly California Earnings Statement so you’ll always know where you stand.

Note: A quarter is a period of three months regarded as one-fourth of a year (e.g., January, February, and March).

Healthcare Stipend FAQs:

What is a qualifying health plan?

You can choose any qualifying healthcare plan that fits your needs. You can visit Covered California at www.coveredca.com to find health insurance available under the Patient Protection and Affordable Care Act. 

In order for it to be a “qualified plan,” you must be the primary policyholder for your plan. Please note that Medicare, Medicaid, and employer-sponsored healthcare plans do not qualify.

Roadie has partnered with Stride Health to make it easy to sign-up for a qualifying plan. Visit roadie.stridehealth.com for details about how to get started.

Please note, Roadie will require a driver to submit proof of current enrollment in a qualifying health plan prior to making any stipend payments. 

How do I sign up for a qualifying health plan?

Roadie has partnered with Stride Health, to provide affordable access to health insurance and other benefits for drivers. To learn more and sign-up, visit roadie. stridehealth.com .

Does it matter when I sign up?

Each healthcare plan is different, but Stride Health’s current annual Open Enrollment Period in California runs from November 1 through January 31, 2021.

Additionally, some major life events -- like getting married, having a baby, or losing health coverage — make you eligible for a Special Enrollment Period, allowing you to enroll in health insurance outside the yearly Open Enrollment Period.

When will I start receiving a Healthcare Stipend if I qualify?

Healthcare Stipends will be paid within 15 days of the end of the first quarter of 2021 and will appear on your California Earnings Statement.

Are Healthcare Stipends taxable?

The amount of any Healthcare Stipend paid to you is taxable income and will be reported by Roadie as taxable income on a Form 1099-NEC or other applicable forms as required by law.

We recommend using a free filing service like TurboTax to help you better understand the impact of stipends on your tax liability, or seek guidance from a qualified tax professional.

What do I need to do to prove my eligibility? 

If you receive an email from Roadie requesting proof of eligibility, you can simply reply to that email and attach the requested documents. You can show proof of health insurance membership by submitting electronic copies or photos of valid, current health insurance identification cards, or Evidence of Coverage and Disclosure forms, which are typically included on the first page of your policy.

Remember, you should only provide this information to Roadie if we request it via email. 

When will I receive the Healthcare Stipend? 

Your healthcare stipend will be paid within 15 days of the end of every quarter. You’ll be able to track hours worked per quarter in your bi-weekly summary email so you’ll always know where you stand.

Note: A quarter is a period of three months regarded as one-fourth of a year (e.g., January, February, and March).

I’m enrolled in more than one healthcare plan. Can I receive a stipend for each plan?

No. Roadie will pay one Healthcare Stipend per eligible driver.

Does the Healthcare Stipend also apply to dependents or spouses?

The Healthcare Stipend is a direct payment made to the driver to assist the driver in paying for the cost of the driver’s qualifying healthcare plan of choice.

*This dollar amount will be published by Covered California in December of each year. Visit www.coveredca.com to learn more.

**Learn about qualifying life events here.

6. Injury Protection Insurance 

If you’re injured in an accident while delivering a Gig in California, you can submit a claim to Roadie at protection@roadie.com to get financial support for medical expenses and disability payments.

There’s no need to sign up—you’ll be automatically covered by our policy every time you’re on an active Gig starting on January 5, 2021. 

Learn more about our Injury Protection Insurance policy here .