Proposition 22 Passed in California: What it means for users of the HopSkipDrive platform
Written by Lauren Rueger
California’s Proposition 22 (Prop 22) just passed in the November 2020 election, and has understandably brought up some questions and conversation in the communities we support.
To help clarify Prop 22, how it will impact HopSkipDrive as a transportation network company (TNC), and what it means for users of the HopSkipDrive platform, we wanted to share some important pieces of information:
What is California Proposition 22?
Prop 22, which passed in the November 2020 election, clarifies that drivers who work on transportation network platforms, like HopSkipDrive CareDrivers, are independent contractors and are not subject to California Assembly Bill 5 (AB5).
AB5, which went into effect January 1, 2020, had adopted a strict “ABC” test for determining whether a worker is an employee or an independent contractor. AB5 and the application of the ABC test created a significant amount of confusion for many industries and self-employed individuals. This lack of clarity created a lot of confusion for our partners and others as to whether a platform like HopSkipDrive was subject to AB5. Prop 22 explicitly makes it clear that CareDrivers are independent contractors and provides that extra clarity to HopSkipDrive, CareDrivers, and our partners.
How does Prop 22 impact school partnerships?
Prop 22 bolsters our ability to continue providing a safe and reliable transportation solution. It ensures we can continue to provide districts and schools with solutions that guarantee available driver supply, offer enhanced and unparalleled safety measures, and provide these solutions at prices that enable significant cost savings.
What does Prop 22 mean for CareDrivers?
The passage of Prop 22 means that access to flexible, independent earning opportunities on the HopSkipDrive platform is protected. Prop 22 also affords drivers of TNCs and DNCs with specific protections including:
- a health care contribution for qualifying drivers,
- an earnings guarantee, and
- occupational accident insurance.
Ultimately, Prop 22 is the best outcome for Riders, education partners, and CareDrivers who use HopSkipDrive. We look forward to continuing to provide a safe and reliable transportation solution to current and future partners through our innovative model.
Does Prop 22 apply to other types of student transportation providers?
It is important to note that Prop 22 applies only to transportation network companies, like HopSkipDrive, and does not apply to other types of transportation service providers or transportation brokers. Those companies are clearly subject to AB5 and are required to operate in compliance therewith. It may be recommended that school districts ask these providers to certify their compliance with AB5 and to provide evidence that the fleets they work with are properly classifying employees.
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