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App-based companies to reimburse millions to California gig workers for vehicle expenses (TechCrunch)

June 02, 2023

App-based ride-hail and delivery companies must reimburse California gig workers potentially millions of dollars for unpaid vehicle expenses between 2022 and 2023, TechCrunch reported. The back payments come from a provision California’s controversial independent contractor law, Proposition 22, which classifies gig workers as independent contractors rather than employees. Uber, DoorDash, Lyft and Grubhub all told TechCrunch that they didn’t adjust driver reimbursement fees because they were waiting for the California treasurer’s office to publish adjusted rates. The treasury is tasked by Prop 22 with calculating and publishing the adjusted rate each year; the office failed to do so in a timely manner, according to the companies.