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Uber · 2025 report · 12 min

Drivers: contractors or employees?

Uber's drivers aren't its employees. But depending on where they drive, the law asks for more. What does the answer change?

$
Ticket 01 · The guess

California's floor

California's Proposition 22 lets app drivers stay independent contractors, as long as the app doesn't set their hours, make them take every trip, or stop them from using other apps or doing other work. In return, it sets a pay floor for the time they spend on trips.

The floor is a share of the minimum wage. What share?

75%
50%200%
Words to know

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Tell us what looks off. No name or email needed.

What kind of problem?

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Sources and every number (4)

Sources

  • California Business and Professions Code section 7453, Earnings Guarantee (added by Proposition 22) · California Legislative Information, 2020
  • Per-Mile Compensation Annual Adjustment for App-based Drivers (Proposition 22 rates, 2021 to 2026) · California State Treasurer, 2026
  • California Business and Professions Code section 7454, Healthcare Subsidy (added by Proposition 22) · California Legislative Information, 2020
  • California Business and Professions Code section 7455, Loss and Liability Protection (added by Proposition 22) · California Legislative Information, 2020

Every number

  • 120%ca.gov ·2020 · Prop 22's net earnings floor for engaged time, as a share of the applicable minimum wage (section 7453).
  • $0.37ca.gov ·2026 · Prop 22's pay per engaged mile for 2026, adjusted each year for inflation (State Treasurer's table).
  • 15 hoursca.gov ·2020 · Average engaged hours a week in a quarter that start Prop 22's health care subsidy, at half the full amount (section 7454).
  • 25 hoursca.gov ·2020 · Average engaged hours a week in a quarter that earn the full health care subsidy (section 7454).
  • $1Mca.gov ·2020 · The least the required accident insurance must cover for a driver's medical costs, for injuries while online (section 7455).
  1. Lessons›
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  3. Uber
  • ·Before this: The long road to profit
  • ·Free guide: How Uber makes money
Skip to the lesson
Back to the home page and map, from TryOwning · Uber · Lesson 4
Part 1 of 2Part 1 of 2, 0 done

Uber · 2025 report · 12 min

Drivers: contractors or employees?

Uber's drivers aren't its employees. But depending on where they drive, the law asks for more. What does the answer change?

$
Ticket 01 · The guess

California's floor

California's Proposition 22 lets app drivers stay independent contractors, as long as the app doesn't set their hours, make them take every trip, or stop them from using other apps or doing other work. In return, it sets a pay floor for the time they spend on trips.

The floor is a share of the minimum wage. What share?

75%
50%200%
Words to know

Spot something wrong?

Tell us what looks off. No name or email needed.

What kind of problem?

0 / 1000

We'll also send this page, the lesson, ticket 1, so we can find it. Nothing else. Privacy

·
Sources and every number (4)

Sources

  • California Business and Professions Code section 7453, Earnings Guarantee (added by Proposition 22) · California Legislative Information, 2020
  • Per-Mile Compensation Annual Adjustment for App-based Drivers (Proposition 22 rates, 2021 to 2026) · California State Treasurer, 2026
  • California Business and Professions Code section 7454, Healthcare Subsidy (added by Proposition 22) · California Legislative Information, 2020
  • California Business and Professions Code section 7455, Loss and Liability Protection (added by Proposition 22) · California Legislative Information, 2020

Every number

  • 120%ca.gov ·2020 · Prop 22's net earnings floor for engaged time, as a share of the applicable minimum wage (section 7453).
  • $0.37ca.gov ·2026 · Prop 22's pay per engaged mile for 2026, adjusted each year for inflation (State Treasurer's table).
  • 15 hoursca.gov ·2020 · Average engaged hours a week in a quarter that start Prop 22's health care subsidy, at half the full amount (section 7454).
  • 25 hoursca.gov ·2020 · Average engaged hours a week in a quarter that earn the full health care subsidy (section 7454).
  • $1Mca.gov ·2020 · The least the required accident insurance must cover for a driver's medical costs, for injuries while online (section 7455).
  1. Lessons›
  2. Big companies›
  3. Uber
  • ·Before this: The long road to profit
  • ·Free guide: How Uber makes money