California prop 22: What you need to know

In this article:

Under Proposition 22 (“Prop 22”) in California, you can continue to enjoy the flexibility and independence of your Roadie side hustle, with more peace of mind.

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

If you’re a Roadie Driver in California, you are now:

Entitled to a Minimum Earnings Guarantee.
Protected by our Injury Protection Insurance policy when you’re on an active Gig.
Eligible for a healthcare stipend 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

While using the Roadie app in California, you’ll continue to enjoy the flexibility and control to choose when, where, and how you drive. All Gig Earnings in California are subject to a Minimum Earnings Guarantee.

What stays the same:

You’ll continue to receive 100% of your Tips.
Whenever you complete a Gig, you’ll still be able to choose between the standard weekly payout and Instant Pay (if eligible). Whichever you choose, you’ll see the details of all your Total Gig Earnings, Pre-Paid Tips, Pre-Paid Reimbursements, and adjustments (if applicable) 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 Total Engaged Time, plus the statutory per mile reimbursement. If you earn more than the Minimum Earnings Guarantee, you’ll keep the extra earnings. Plus, you’ll always keep 100% of your Tips and Reimbursements, which aren’t calculated as part of the Minimum Earnings Guarantee.
At the end of each earnings period, if your Total Gig Earnings are less than the Minimum Earnings Guarantee for the period, you will receive a Minimum Earnings Guarantee Adjustment payment to make up for the difference. There’s nothing you need to do to get the adjustment; the extra payment is added automatically to your payouts and you’ll see that payment listed as a Minimum Earnings Guarantee Adjustment in your driver in-app dashboard and on your California Earnings Statement.

Every two weeks, you’ll receive an email with your California Earnings Statement, detailing your Total Gig Earnings for the earnings period (14 calendar days), the Minimum Earnings Guarantee, Total Engaged Time, Total Engaged Mileage, the Minimum Earnings Guarantee Adjustment (if applicable), any Pre-Paid Tips, and any Pre-Paid Reimbursements.

Here’s an example of how your guaranteed earnings would be calculated with the below engaged time and mileage:

Applicable Minimum Wage: $15/hr

Statutory Per Mile Reimbursement: $0.30

Total Engaged Time in current Earnings Period: 10 hours

Total Engaged Mileage for all Gigs in the current Earnings Period: 200 miles

Your Total Gig Earnings for all Gigs in the current earnings period: $200

You earned $50 in Pre-Paid Tips.

You had $15 in Pre-Paid Reimbursements.

With the Minimum Earnings Guarantee, your guaranteed earnings for the earnings period are $240:

10 hours (Total Engaged Time) X $15 (Minimum Wage) X 120% = $180

200 (Total Engaged Miles) X .30 (statutory per mile reimbursement) = $60

$180 (Total Engaged Time) + $60 (Total Engaged Mileage) = $240 (Guaranteed Earnings)

If the amount of your Total Gig Earnings (not including Tips or Reimbursements) is less than your guaranteed earnings for the earnings period, you will be paid a Minimum Earnings Guarantee Adjustment to make up for the difference. In this example, the Minimum Earnings Guarantee Adjustment is equal to $40. $240 (Guaranteed Earnings) - $200 (Total Earnings) = $40 (Minimum Earnings Adjustment).

Of course, you will still receive 100% of the Tips you earned – in this case, $50, and any Reimbursements, in this case, $15. Tips and Reimbursements are never part of the Minimum Earnings Guarantee calculation.

Minimum Earnings Guarantee FAQs:

Q: How are Total Engaged Time and Total Engaged Mileage calculated?

Total Engaged Time and Total Engaged Mileage are calculated from the time you tap "Start Gig" in the Roadie app until the time you tap "Complete Delivery" at dropoff. Canceled Gigs and Gigs marked Delivery Attempted will also be included in your Total Engaged Time and Total Engaged Mileage calculations. 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 the pickup and the dropoff locations by the designated time shown in your Roadie app.

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

Note, your payment for Total Engaged Mileage is not a separate payment but is included as part of the Minimum Earnings Guarantee.

Q: How do simultaneous or batched Gigs work with the Minimum Earnings Guarantee?

For multi-delivery Gigs, Total 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 you complete multiple Gigs simultaneously or are accepted to additional Gigs during your drive, any Engaged Time overlap during your performance of those Gigs will be automatically adjusted in the Total Engaged Time calculation shown on your Earnings Statement. This automatic calculation ensures you are not paid double for Total Engaged Time on overlapping Gigs.

Q: What if a Gig is Canceled after I hit ‘Start Gig’ or needs to be returned?

If a Gig is canceled, Total Engaged Time and Total Engaged Mileage is still calculated. As with all Gigs, Total Engaged Time is estimated from the time you tap “Start Gig” in the Roadie app. Total Engaged Time ends when the Gig is canceled. When a Gig is canceled, Total Engaged Mileage is calculated by using a percentage of the estimated mileage at the time of the Gig cancellation. For example, if the estimated time to pickup a Gig is 20 minutes after “Start Gig” is selected, and the Gig was canceled 10 minutes after, the Total Engaged Time will be 10 minutes and the Total Engaged Mileage will be 50% of the total estimated mileage to the pickup location.

Q: 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 with a pickup location in California qualifies for the Prop 22 Minimum Earnings Guarantee.

Q: 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 Guarantee Adjustment will be added to your payout balance and will be included in your next payout. You’ll also be able to view your earning period statement on your Driver Dashboard.

Q: If I’m driving on the Roadie platform and other gig platforms, 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 the Minimum Earnings Guarantee for each earnings period.

Q: Will I still be reimbursed for tolls and parking fees?

Yes. Nothing will change with respect to reimbursement for tolls and parking fees. See our FAQ about tolls for more info.

Q: What if I receive a Gig Tip, or my Gig Tip changes, after I receive my Earnings Statement for the period?

If a Gig Tip is received or changes after the Earnings Statement for the period, you will still receive 100% of the Gig Tip. However, the Gig Tip, or changes to a Gig Tip, will not appear on the subsequent Earnings Statement.

Q: Are Minimum Earnings Guarantee adjustments taxable?

The amount of any Minimum Earnings Guarantee adjustment will be reported by Roadie on a 1099-MISC form or other applicable forms as required by law. We recommend seeking guidance from a qualified tax professional when filing your taxes.

Q: 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 Total Engaged Time, Total Engaged Mileage, and Pre-Paid Tips and Reimbursements for your California Gigs. Only California Gigs are counted towards the Minimum Earnings Guarantee.

2. Mandatory Breaks

Under Prop 22, you are required to take an uninterrupted 6-hour break once you reach 12 hours of Total Engaged Time on the Roadie platform within any single 24-hour period. When a break is required, 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. This is for your safety and the safety of others.

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.

Safety Course FAQs

How do I get information about the course?

The mandatory safety course will be available to all California 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 to finalize forming your account.

You will not 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 Total Engaged Time per week throughout the calendar quarter, you can 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 qualify for the Healthcare Stipend in any calendar quarter, California drivers must:

Be enrolled in a qualifying health plan; AND
Drive an average of 15 hours of Total Engaged Time per week within each calendar quarter. The calendar quarters are January - March (Quarter 1), April - June (Quarter 2), July - September (Quarter 3), and October - December (Quarter 4); AND
Provide Roadie proof of current enrollment in a qualifying health plan for the calendar quarter within fifteen (15) days of the end of the calendar quarter.

If you drive on the Roadie platform an average of:

15 to 24.9 hours of Total 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 Total 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 receiving the required documentation each 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.

Healthcare Stipend FAQs:

Q: 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 requires a Driver to submit proof of current enrollment in a qualifying health plan each calendar quarter prior to making any stipend payments.

Q: 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.

Q: 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 of each year.

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.

Q: When do I receive a Healthcare Stipend if I qualify?

Healthcare Stipends will be paid within 15 days after required documentation is received each quarter and will appear on your California Earnings Statement.

Q: Are Healthcare Stipends taxable?

The amount of any Healthcare Stipend paid to you will be reported by Roadie as taxable income on a Form 1099-NEC or other applicable forms as required by law.We recommend seeking guidance from a qualified tax professional when filing your taxes.

Q: What do I need to prove my enrollment in a healthcare plan?

You can show proof of health insurance coverage by submitting electronic copies or photos of valid, a current health insurance identification card, or an Evidence of Coverage and Disclosure form, which are typically included on the first page of your policy.

In each quarter that you are eligible for the Healthcare Stipend, Roadie requires that you provide proof of health insurance coverage prior to the payment of the stipend.

Q: 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.

Q: 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.

Learn more about our Injury Protection Insurance policy here.

If you need additional assistance, you can always contact us via chat on the website.