• A provision in the divisive Proposition 22 will entitle gig workers in California to reimbursements on vehicle expenses.
• This is specifically for the periods of 2022 and 2023, and applies to Uber, Lyft, DoorDash, and others in the US state.
• The reimbursement came into effect in 2021, and affords drivers $0.30 per mile driven, according to Proposition 22.

In 2021, the divisive Proposition 22 came into effect in California, exempting gig workers and drivers from being classified as employees at companies like Uber, Lyft, and DoorDash.

While the law has proved extremely limiting for gig workers in the region over the past couple of years, there could be something good to come of it, as these workers are reportedly entitled to reimbursements for vehicle expenses for 2022 and 2023.

As TechCrunch reports, a clause in Proposition 22 makes provisions for drivers at 30 cents (US) per mile driven.

“After the effective date of this chapter and for the 2021 calendar year, the per-mile compensation for vehicle expenses shall be thirty cents ($0.30) per engaged mile. For calendar years after 2021, the amount per engaged mile shall be adjusted pursuant to clause,” the documentation explains.

“For calendar years following 2021, the per-mile compensation for vehicle expenses described in clause (ii) shall be adjusted annually to refect any increase in inflation as measured by the Consumer Price Index for All Urban Consumers (CPI-U) published by the United States Bureau of Labor Statistics. The Treasurer’s Offce shall calculate and publish the adjustments required by this subparagraph,” it adds.

This means that vehicle expense rate should be adjusted to compensate for inflation too.

With it estimated that there are roughly 1.3 million gig workers driving around California, this clause would mean that the likes of Uber, Lyft, DoorDash, and others, would need to fork out quite a bit in terms of reimbursements.

While it is unclear how much each of these gig platforms will need to pay drivers for past miles racked up, many have already begun the process, with Uber and DoorDash starting to do so earlier this month once the California treasurer adjusted the aforementioned $0.30 rate after being pressed by workers in the state. Lyft also confirmed to TechCrunch that is issuing backpay now that the rate has been adjusted.

There is still plenty of work to be done, however, as the publication notes, with transparency and communication around issues like seemingly non-existent from gig platforms.

It has therefore become critical for workers and drivers to push the agenda and receive appropriate compensation if they are not going to be acknowledged as employees by the state of California.

[Image – Photo by Paul Hanaoka on Unsplash]