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Where this applies
California state law (Proposition 22, Business and Professions Code 7448 and following; the ABC test in Labor Code 2775). Local minimum wages apply to the pay floor. Federal tax rules apply everywhere.
Facts checked
Who it’s for

People in California who drive or deliver through apps like rideshare and food or grocery delivery, and people who find other short jobs through apps or websites. With or without papers. Also family members and helpers.

On this page

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App work can be flexible, and many families count on it. But flexible does not mean you have no rights. We will show you what the law guarantees and how to check that you are getting it.

This page is general information, not legal or tax advice. For your rights as an employee, see Your rights at work, with or without papers.

Am I an employee or a contractor?

It depends on what you do.

  • App based rideshare and delivery drivers. Under Prop 22, a driver for a rideshare or delivery app is an independent contractor, not an employee, if the app does not set your hours, does not make you accept specific requests, lets you work for other apps, and lets you do other jobs (B&P Code 7451). The California Supreme Court upheld Prop 22 in 2024 (Castellanos v. State of California).
  • Everyone else. Most other workers in California are employees unless the hiring business proves all three parts of the ABC test: you are free from its control, your work is outside its usual business, and you run your own independent trade (Labor Code 2775; LWDA ABC test).

If you are not sure, read Am I an employee or an independent contractor?

What does Prop 22 give me?

If Prop 22 covers you, the app company owes you these protections.

1. A pay floor for every pay period. For each earnings period (no longer than 14 days), the company compares your net earnings to the floor and must pay any difference by the next period (B&P Code 7453). The floor is:

  • 120% of the minimum wage for your engaged time. If you pick up in a city with a higher minimum wage, that city's wage counts for that trip.
  • Plus a per mile amount for engaged miles in a car. It started at $0.30 in 2021 and is $0.37 in 2026, set by the California State Treasurer.

Tips, tolls and airport fees do not count toward the floor. Bonuses and incentives can count (B&P Code 7453(d)).

2. You keep 100% of your tips. The company cannot take any part of a tip or cut your pay because a customer tipped (B&P Code 7453(c)).

3. A health care payment. If you average 25 or more engaged hours a week in a quarter, the company pays a quarterly subsidy equal to the full average contribution for a Covered California plan. At 15 to under 25 hours, it pays half (B&P Code 7454). The company must show your engaged hours on each pay statement.

4. Accident insurance while you are online. Companies must carry insurance that covers up to $1,000,000 in medical costs for injuries while you are logged in, plus disability pay of 66% of your average weekly app earnings for up to 104 weeks, and death benefits for your family (B&P Code 7455).

5. No discrimination. A company cannot refuse you, end your contract or deactivate you because of your race, color, ancestry, national origin, religion, age, disability, sex, gender, sexual orientation, gender identity, and other listed traits. These claims go under California's Unruh Civil Rights Act (B&P Code 7456).

6. Safety rules. Companies must have a sexual harassment policy (7457), run background checks (7458), give safety training (7459), and stop you from driving more than 12 hours in 24 without a 6 hour break (7461).

What counts as engaged time?

Engaged time runs from when you accept a ride or delivery to when you complete it (B&P Code 7463(j)). It does not include time after a customer cancels or a trip you abandon.

Waiting time between trips is not engaged time. That is the big gap in Prop 22. If you spend 2 hours online but only 1 hour on trips, the floor covers 1 hour.

Engaged miles are miles driven during engaged time in a car. If you deliver by bike or on foot, you get the time floor but no mileage.

What if I am deactivated?

Prop 22 says the company must have a written agreement with you, can end it only for a reason listed in that agreement, and must give you an appeal process (B&P Code 7452).

  1. Read the deactivation notice. Write down the reason given.
  2. Find the matching rule in your agreement or community guidelines. Save a copy.
  3. Use the app's appeal process right away. Ask for the reason in writing.
  4. If you think it was because of your race, national origin, religion or another protected trait, tell a lawyer or Legal Aid at Work. That can be a discrimination claim.

Can rideshare drivers form a union?

Yes, as of 2026. On October 3, 2025, the governor signed AB 1340, the Transportation Network Company Drivers Labor Relations Act. Since January 1, 2026, rideshare drivers have the right to form and join driver organizations and bargain together, or to stay out (PERB). The state Public Employment Relations Board runs the process. Its rules were still being written in fall 2026; public comment closes November 3, 2026 (PERB TNC Act page).

This law covers rideshare (TNC) drivers. It does not name food or grocery delivery couriers.

What if I do not drive or deliver?

Prop 22 covers only app based rideshare and delivery drivers. If you clean homes, move furniture, assemble things, care for people or do other jobs through an app or website, the normal California rules apply. You may be an employee under the ABC test (Labor Code 2775).

If you are really an employee, you are owed minimum wage, overtime, paid sick days and more. A business that willfully calls employees contractors can face penalties of $5,000 to $15,000 per violation (Labor Code 226.8). You can file a wage claim with the Labor Commissioner. It does not ask about immigration status (Labor Commissioner FAQ).

Do I need papers to do app work?

Apps set their own sign up rules. Many ask for a Social Security number for a background check and taxes. This is an immigration question for a lawyer, not something DNLH can decide for you.

Two warnings:

  • Do not drive under someone else's account. This is our advice, not a rule from the law. The app's pay records and tax forms are in the account holder's name. If you get hurt or are not paid, you may have no proof that it was you, and you may have trouble claiming the pay floor or the accident insurance. Ask a clinic before you rely on someone else's account.
  • Never use false papers. It can hurt your future immigration options.

If you do not have work permission, see Earning a living without a work permit and get a free screening at Free or low cost immigration legal help in the Bay Area.

What about taxes?

As a contractor, no one takes taxes out of your pay. You report the income yourself, with an SSN or an ITIN. Apps may send a Form 1099. You must report your income with or without a form (IRS, Understanding Form 1099-K). Keep a mileage log. Free tax help is on Money and taxes: the complete guide.

Mistakes to avoid

  • Relying only on the app's records. Download statements every month. Screenshot trips and pay.
  • Counting tips toward the floor. They do not count.
  • Skipping the appeal after deactivation. Appeal fast and in writing.
  • Signing an arbitration or settlement offer without advice. Ask a free clinic first.

Who can help?

These programs are free or low cost. Contact them to confirm hours, languages and openings. Being listed here is not a referral or a promise of service.

  • Legal Aid at Work (statewide): 415-864-8848. Free clinics for workers who meet income limits. East Palo Alto line: (415) 404-9093 (Workers' Rights Clinic).
  • California Labor Commissioner: 833-526-4636, with interpreters. For wage claims if you are really an employee.
  • California Civil Rights Department: 800-884-1684. For discrimination by a business.
  • More Bay Area options: Free help with a work problem in the Bay Area.

Questions people ask

Does Prop 22 give me paid sick days or unemployment? Prop 22 does not list paid sick days or unemployment insurance among its benefits. Because it treats covered drivers as contractors, the usual employee benefits do not apply.

Do I get the San Francisco minimum wage if I live in Oakland? The floor uses the minimum wage where the passenger or item is picked up (B&P Code 7453(d)(1)).

I was hurt while delivering. What now? Report it to the app right away and ask for the occupational accident insurance claim. Get medical care. Keep every record.

Can the app cut my pay if a customer tips well? No. That is banned (B&P Code 7453(c)).

I do house cleaning through an app. Am I covered by Prop 22? No. Prop 22 is only for rideshare and delivery drivers. You may be an employee. Talk to a clinic.

Is there a worksheet I can print?

You keep the wheels turning for a lot of people. Know your floor, keep your records, and ask for help when the numbers do not add up.

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