Ride-hailing drivers in California are taking home about $6.20 an hour under a law that was approved by the state's voters a couple of years ago, according to a report published Wednesday.
Proposition 22, which is in legal limbo after a court deemed it unconstitutional last year, among other things promised 120% of the state's minimum wage to gig workers. But according to the report developed by the National Equity Atlas and Rideshare Drivers United, which the groups say is the first driver-led study using directly collected earnings data and working conditions to assess the impact of Prop. 22, the reality falls far short of that promise.
"The ride-hailing companies and DoorDash were throwing millions of dollars at it, but not at me," said Dominique Smith, a driver for Uber and Lyft in the Bay Area, during a news conference Tuesday. "I definitely wasn't a fan of Prop. 22 to begin with, and I'm definitely not a fan afterward."
The effects of the California law backed by Uber Technologies Inc. (UBER), Lyft Inc. (LYFT) and other gig companies like DoorDash Inc. (DASH) are important and potentially far-reaching as the companies try to expand Prop. 22 or something similar -- what Uber has dubbed the "independent contractor-plus" model -- to other states and countries. In addition, the report cites Bureau of Labor Statistics data that showed that in 2019, the number of U.S. adults who worked as taxi drivers or chauffeurs for their primary job had tripled over the...
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