For immediate release: Aug. 25, 2020
Contact: Geoff Vetter, (916) 634-9051
New Study Finds That Under Proposition 22 App-Based Drivers Will Earn At Least $25 Per Hour
Prop 22 would lead to hourly earnings well above California’s minimum wage
SACRAMENTO – A new study co-authored by Dr. Christopher Thornburg, Director of the UC Riverside School of Business Center for Economic Forecasting & Development, found that Proposition 22 will lead to earnings well above minimum wage for hundreds of thousands of California app-based drivers.
The UC Riverside study found that under Prop 22:
- A driver driving an average of five hours per week would earn an average of $25.61 per hour after accounting for expenses and wait time between rides
- A driver driving either 15 or 30 hours per week would earn an average of $27.58 per hour, after accounting for expenses and wait time.
- These hourly earnings estimates are substantially higher than the earnings guarantee of 120% of the minimum wage provided by Prop 22 of $15.60/hour ($16.80/hour in 2021)
The findings of the UC Riverside study directly contradict a flawed “study” floated by opponents of Prop 22 suggesting that earnings under the initiative would be far lower. A previous study from the University of California Berkeley Labor Center only added 20% to California’s current minimum wage rate without factoring in that driver data shows app-based drivers earn more than 20% over California’s current minimum wage.
“These findings confirm what the vast majority of drivers already know—that we would be better off under Prop 22 with the ability to work when we want, for however long we want, plus the new benefits and earning guarantees,” said Mary Andruczyk, a retiree from Redlands who drives part time to earn extra income. “Under Prop 22, we’ll earn almost double the state minimum wage – the amount we’d likely make if we were forced to find work as an employee. The reality is taking away our ability to work independent not only means less pay, it means the loss of hundreds of thousands of jobs. That’s why I strongly support Prop 22.”
This study is further evidence that Proposition 22 would benefit California’s app-based drivers – by requiring a higher guaranteed minimum earnings standard equal to 120% of minimum wage. Prop 22 will ensure that app-based rideshare and delivery drivers can keep the flexibility they want to choose when and how to work, while taking advantage of the new benefits the initiative would provide, including a new earnings guarantee and health care.
According to independent polls and Bureau of Labor Statistics data, more than 70% of drivers—the majority of whom work fewer than 10 hours per week— want the ability to choose when and how they work. Without Prop 22, California could potentially lose hundreds of thousands of jobs as app-based rideshare and delivery drivers seek other forms of flexible employment. Prop 22 is also needed to save app-based rideshare and delivery services in California that millions rely on, which are at risk of being shut down in California because of Sacramento politicians’ destructive laws and lawsuits.