In California, Doordash drivers and other gig workers are entitled to a guaranteed minimum pay of 120 percent of minimum wage for any active time they work. This began in 2020 when Prop 22 was passed in the state of California.
Under Prop 22, gig workers remained independent contractors, but they now had certain benefits that gig workers didn't have before. In this article, we are only going to talk about the pay benefit. We know that gig workers are guaranteed to receive 120 percent of minimum wage, but how exactly does that work?
How much money are Doordash drivers in California guaranteed with Prop 22?
We are going to concentrate on the money here that Doordash drivers are guaranteed for their active time. Although minimum wage in California can vary in certain sections and by the number of employees an employer has, most areas of California have a $15 minimum wage for employers with 25 or fewer employees and $15.50 for those with over 25 employees. Since Doordash has over 25 employees, I am assuming they must be going by the $15.50 minimum wage.
If you do the math, 120% of $15.50 is $18.60. So, dashers are guaranteed $18.60 for their active time while making deliveries. When you add in the $0.30 per mile (another perk of Prop 22,) we can estimate that a dasher is guaranteed about $20 per hour.
Dashers are only getting paid when they are on an active call
The guaranteed Prop 22 pay for a California dasher only happens when they are on an active call. This is what they call "Active time." There is a difference between "Dash time" and "Active time." For example, if a dasher is out working for 8 hours, but 3 of those hours are spent waiting for calls, they will have 5 active hours that they have accumulated. They will have 8 hours of "Dash time" and 5 hours of "Active time."
So how does the Prop 22 active time work for Doordash drivers in California?
I'm going to give an example call here to clearly explain how Prop 22 pay works. Let's pretend that a dasher logs on to dash at 2 pm, and he don't get a call until 2:30 pm. The offer pays $7 and from that $2 is the tip from the customer. He accepts the call at exactly 2:30 and proceeds to pick up the food and deliver it. He delivers the order at exactly 3:00 pm and slides delivered.
Without Prop 22, this dasher would receive $7 for this order, but with Prop 22 the pay may be different. As I fully explain this example we must assume that this is the only Doordash order that this dasher will do for the week. He will not complete anymore orders.
With Prop 22, this dasher will end up earning 120 percent of minimum wage for his active time; which was 30 minutes. That will come out to $10 (It's normally $20 for 1 hour of active time so 30 minutes would be $10.) He will also receive the $2 tip from the customer as tips are not counted toward the Prop 22 guaranteed pay. At the end of the week, this dasher will see a total payout of $12 for his work. On the breakdown, he will see $5 Doordash base pay, $2 tip and $5 Prop 22 pay.
Dashers Prop 22 earnings will be calculated at the end of the week
The total amount of Prop 22 earnings that a dasher earns will be calculated at the end of the pay period; which ends at midnight on Sunday night. When that time comes, Doordash will figure out how much (if any) Prop 22 pay they have to add to a dasher's earnings.
For example, let's say a dasher makes $300 for the week. $200 is Doordash base pay and $100 is from customer tips. Let's also say that it took this dasher 20 hours of active time to earn this money. With Prop 22, the dasher is guaranteed $400 ($20 per hour X 20 hours of active time.) The final pay for this dasher would be $500. He would earn $300 of Doordash pay, $100 in customer tips and $100 extra of Prop 22 pay. He gets the $100 of Prop 22 pay because he is guaranteed $400 for the week, but he only earned $300.
Does a dasher always get Prop 22 pay?
No. Prop 22 is just there to make sure that a gig worker earns a certain minimum. If a dasher earns more than the minimum guaranteed, they will not receive any Prop 22 earnings.
For example, let's say that a dasher makes $600 for the week. $500 is Doordash pay and $100 is customer tips. The active time for this dasher to make his earnings was 20 hours. With Prop 22, his guaranteed pay was $400 ($20 per hour X 20 hours of active time.) Since this dasher earned $500 (more than the $400 guarantee) he will not receive any Prop 22 pay. His final weekly earnings will be $500 Doordash base pay plus $100 of customer tips which comes out to $600.
Prop 22 pay will change as a dasher works throughout the week
How does this happen. Let's say on Monday a dasher does 5 dashes in 3 hours of active time and earns $40 of base pay and $10 of tips for a total of $50. With the Prop 22 rules, he is deserving of $60 of Doordash base pay ($20 per hour X 3 hours of active time.) If he didn't dash for the rest of the week, his final earnings would be $40 base pay, $10 tips and $10 Prop 22 pay for a total of $60.
But, let's say that this dasher decided to work one other day during the week. On this day, he completed 10 dashes in 3 hours and earned $90 base pay and $10 of tips for a total of $100. We would have to add up this days earnings with the Monday earnings. This dasher's total would be $130 of Doordash base pay plus $20 of customer tips for a total of $150. The dashers total active time would be 6 hours. Under Prop 22 rules the minimum guaranteed earnings will be $120 ($20 per hour X 6 active time hours.) Since the dasher earned $130 base pay (which is more than the $120 minimum guarantee) he will not receive any Prop 22 earnings. His final earnings will be $130 base pay plus his $20 of tips for a total of $150.
Is it better to receive Prop 22 pay?
With Prop 22, a dasher in California is guaranteed to receive 120 percent of minimum wage. It by no means limits a dasher's ability to make more than those minimum earnings. If a dasher earns more than this minimum guarantee, it will usually be better for them. Prop 22 was set so that gig workers are not taken advantage of by earning mediocre earnings. Without Prop 22, there would be times when a dasher only earns $5 or $10 in a whole hour. If a dasher can earn more than the minimum and does not receive any Prop 22 pay, good for them.
When will a dasher know how much Prop 22 pay they get?
A dasher will not know how much their Prop 22 pay is until the end of the week. Once payments are tallied up, Doordash breaks it down for a dasher to view on their app. If a dasher wants to calculate for themselves during their workweek, they can do so by keeping track of all their calls. All it will take is a notepad and a pen. By using the formula that we explained above, the end of week results that a dasher comes up with will always be very close to Doordashs end of week calculations.
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