December
11
2020

Prop 22: New Benefits for California Drivers

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Now that Prop 22 has passed, you’ll get to keep your flexibility — and get new benefits. Guaranteed earnings, a healthcare subsidy, and medical and disability coverage are coming on Dec. 16.

What’s New for You

  • Make guaranteed earnings, including compensation for vehicles expenses: Earn at least 120% of the minimum wage for booked time and 30¢ per booked mile — from the moment you accept a ride request until the time you drop off your passenger. 

  • Qualify for healthcare subsidy: Starting Jan. 1, 2021, you can start qualifying for a quarterly healthcare subsidy when you drive on average a minimum of 15 hours of booked time per week in that quarter. To receive the subsidy, you’ll need to submit proof of current enrollment in a qualifying healthcare plan in the Lyft driver app within 15 days after the end of the calendar quarter.

  • Get medical and disability coverage: You’re covered for injuries on the job through occupational accident insurance.

Frequently Asked Questions

When will these new benefits become available?

The first guaranteed earnings period starts at midnight on Dec. 16, 2020 and ends at 5 AM on Dec. 21, 2020. If you make less than the guaranteed earnings, you’ll automatically be paid the difference on Dec. 23, 2020. Subsequent guaranteed earnings adjustments will be distributed every other Wednesday. 

Starting Jan. 1, 2021, you can start qualifying for the healthcare subsidy by driving an average of 15 booked hours per week each calendar quarter. To get the subsidy, you’ll need to provide proof of insurance in a qualifying health plan.

How are guaranteed earnings calculated?

For every 14-day guaranteed earnings period, Lyft guarantees you’ll earn at least 120% of the minimum wage for booked time, plus 30¢ per booked mile — from the moment you accept a ride request until the time you drop off your passenger.

Local minimum wage is based on the pickup location of each rideshare request you complete. You’ll always keep 100% of your tips, and if you make less than the guaranteed amount (before tips and tolls), you’ll be paid the difference.

When will I receive the guaranteed earnings adjustment?

The first guaranteed earnings period starts at midnight on Dec. 16, 2020 and ends at 5 AM on Dec. 21, 2020. If you make less than the guaranteed earnings, you’ll automatically be paid the difference on Dec. 23, 2020. Subsequent guaranteed earnings adjustments will be distributed every other Wednesday for the previous 14-day calculation period, which resets Mondays at 5 AM.

What happens if I make more than the guaranteed earnings amount?

That’s great! You’ll keep all your earnings.

How is vehicle compensation calculated?

The $0.30 vehicle compensation for each booked mile along with 120% of minimum wage for booked time is used together to calculate guaranteed earnings. You’ll always make at least as much as the guaranteed earnings — if you don’t, Lyft pays you the difference.

How do I receive the healthcare subsidy?

Starting Jan. 1, 2021, you can begin qualifying for a subsidy if you average at least 15 hours per week of booked time over the course of a calendar quarter. To qualify, you’ll need to submit proof of current enrollment in a qualifying health plan in the Lyft Driver app within 15 days after each quarter ends. Healthcare subsidies will be distributed to drivers who qualify following each calendar quarter.

Calendar quarters are defined as:

  • Jan. 1 through Mar. 31

  • Apr. 1 through Jun. 30

  • Jul. 1 through Sep. 30

  • Oct. 1 through Dec. 31

If you average between 15 and 25 hours per week of booked time in a calendar quarter, you can qualify for a subsidy of 50% of the average Affordable Care Act (ACA) contribution for that period.* If you average more than 25 hours of booked time a week in a calendar quarter, you can qualify for a subsidy of 100%. The subsidy is based on the average statewide monthly premium for the bronze health insurance plan as published by Covered California, and is subject to change each year. 

*The average ACA contribution is 82% of the average monthly Covered California premium cost.

Can I still go online at any time?

Yes, you can continue to go online at any time. There are no changes to when or how you can go online.

Can I still decline rides?

You're always free to decline ride requests. 

Can I still keep 100% of my tips?

Yes, you’ll always receive 100% of your tips.

What is occupational accident insurance?

An insurance policy that provides medical and disability coverage for injuries on the job.

Do I need to re-apply if I already drive with Lyft?

No. If you're already on the Lyft platform, you don’t need to take any action. You'll automatically receive the earnings guarantee and can qualify for the additional benefits.