🚚 Overview: Delivery Driver Wages

California delivery drivers for DoorDash, Instacart, Uber Eats, Grubhub, Amazon Flex, and similar platforms have specific wage protections under Proposition 22. While Prop 22 classifies you as an independent contractor, it guarantees minimum earnings and expense reimbursement that platforms must honor.

⚠ Common Platform Wage Violations

Many drivers are owed money without realizing it:

  • Earnings below guarantee: Platforms failing to top up earnings to meet 120% minimum wage
  • Expense shortfalls: Mileage reimbursement not matching actual engaged miles
  • Unpaid wait time: Time waiting at restaurants/stores not counted as "engaged"
  • Tip misallocation: Tips being used to offset base pay rather than adding to it

Who Is Covered?

📦 Delivery Drivers

DoorDash, Uber Eats, Grubhub, Postmates, Amazon Flex delivery drivers.

🛒 Grocery Shoppers

Instacart shoppers, Shipt shoppers, and similar grocery delivery workers.

🚗 Rideshare Drivers

Uber and Lyft drivers also covered by Prop 22 earnings guarantees.

🚧 Multi-App Workers

Drivers working multiple platforms - each platform must meet guarantee independently.

📜 Prop 22 Earnings Guarantee

Proposition 22 requires app-based delivery and rideshare companies to provide minimum earnings during "engaged time" - the time from accepting an order to completing delivery.

The 120% Minimum Wage Floor

Component Requirement 2024 Amount (CA)
Base Rate 120% of local minimum wage $19.20/hr (state) - varies by city
Engaged Time Only From order acceptance to delivery completion Does NOT include waiting for orders
Expense Offset $0.35 per engaged mile (adjusted annually) Based on IRS rate
Calculation Period Biweekly pay period average Not per-delivery calculation

💡 How the Guarantee Works

At the end of each pay period, the platform must calculate:

  • Your total engaged time (hours)
  • Minimum owed = (Engaged Hours x 120% of min wage) + (Engaged Miles x $0.35)
  • If your base earnings (excluding tips) are below this, platform must pay the difference

Tips are NOT included in calculating whether you meet the minimum - they must be paid on top.

Local Minimum Wage Rates (2024)

🏙 San Francisco

$18.67/hr min wage = $22.40/hr Prop 22 floor

🏙 Los Angeles

$16.78/hr min wage = $20.14/hr Prop 22 floor

🏙 San Jose

$17.55/hr min wage = $21.06/hr Prop 22 floor

🏙 Oakland

$16.50/hr min wage = $19.80/hr Prop 22 floor

📚

Business & Professions Code Section 7451

Codifies Prop 22 requirements including minimum earnings guarantee of 120% of minimum wage for engaged time plus per-mile expense compensation.

Expense Reimbursement

Beyond the earnings guarantee, Prop 22 requires platforms to reimburse drivers for vehicle expenses based on engaged miles driven.

Per-Mile Reimbursement

📊 Prop 22 Expense Rate

2024 IRS Standard Mileage Rate $0.67/mile
Prop 22 Rate (approx. 52% of IRS) $0.35/mile
Applies to Engaged miles only

⚠ The Engaged Miles Problem

Platforms only pay for "engaged" miles - from order acceptance to delivery. This excludes:

  • Miles driving to pickup location before accepting order
  • Miles between deliveries while waiting for next order
  • Miles driving home after finishing shift

Studies show drivers may drive 30-50% more miles than what's reimbursed as "engaged."

What Expenses Are You Actually Incurring?

Expense Category Real Cost Prop 22 Covers?
Gas/Fuel $0.15-0.25/mile Partially (engaged only)
Vehicle Depreciation $0.20-0.30/mile Partially (engaged only)
Maintenance/Repairs $0.10-0.15/mile Partially (engaged only)
Insurance (Commercial) $100-300/month No
Phone/Data Plan $50-100/month No
Insulated Bags/Equipment $50-200 one-time No

💡 Tax Deductions for Unreimbursed Expenses

Even if you can't recover unreimbursed expenses from the platform, you can deduct them on your taxes. Track ALL miles (not just engaged) and other business expenses. The difference between IRS rate ($0.67) and Prop 22 rate ($0.35) is deductible.

📈 Calculate What You're Owed

Use this framework to determine if you've been underpaid under Prop 22.

Step-by-Step Calculation

Step 1: Get Your Data

Request your earnings data from the platform:

  • Total engaged hours per pay period
  • Total engaged miles per pay period
  • Base pay (before tips)
  • Any "adjustment" or "guarantee" payments made
  • Tips received
Step 2: Calculate Minimum Owed

For each pay period:

  • Time component: Engaged Hours x (Local Min Wage x 1.2)
  • Mileage component: Engaged Miles x $0.35
  • Total minimum: Time + Mileage
Step 3: Compare to Actual Pay

Compare your base pay (excluding tips) to the minimum:

  • If base pay >= minimum: Platform met obligation
  • If base pay < minimum: Platform owes the difference
  • Check if any "adjustment" payment was made

📊 Sample Calculation - One Pay Period

Example: Los Angeles driver, 40 engaged hours, 300 engaged miles

Engaged hours 40 hours
LA Prop 22 rate ($16.78 x 1.2) $20.14/hr
Time component (40 x $20.14) $805.60
Engaged miles 300 miles
Mileage component (300 x $0.35) $105.00
MINIMUM OWED (before tips) $910.60

⚠ Red Flags Your Platform Is Underpaying

  • You never see "guarantee adjustment" payments
  • Your per-hour earnings (excluding tips) are below 120% of minimum wage
  • Mileage shown in app doesn't match your actual driven miles
  • Platform counts "active time" differently than "engaged time"
  • Tips seem to be offsetting base pay

Evidence Checklist

Gather this documentation to support your wage claim.

📱 App/Platform Records

  • Weekly/biweekly earnings summaries
  • Engaged time records per delivery
  • Mileage data from the app
  • Any "guarantee adjustment" payments

💰 Payment Records

  • Bank deposits/direct deposit records
  • 1099 tax forms from platform
  • Screenshots of payment breakdowns
  • Tip amounts vs base pay breakdown

🚗 Your Own Records

  • Mileage tracking app data (Stride, Everlance)
  • Time logs of actual working hours
  • Gas receipts
  • Vehicle maintenance records

📩 Communications

  • Emails/messages about pay disputes
  • Support chat transcripts
  • Policy documents from platform
  • Any written responses to complaints

💡 Request Your Full Data

Under California's CCPA, you can request all personal data the platform has about you, including detailed trip/delivery records, time tracking, and payment history. Submit a CCPA request to get comprehensive records.

📝 Sample Demand Language

Customize these templates for your delivery driver wage claim.

Prop 22 Earnings Guarantee Demand
RE: Demand for Unpaid Prop 22 Earnings Guarantee
Driver Account: [YOUR EMAIL/ACCOUNT]
Period in Dispute: [DATE RANGE]

To Whom It May Concern:

I am a delivery driver on the [DOORDASH/INSTACART/UBER EATS] platform in California. This letter constitutes a formal demand for payment of unpaid earnings owed to me under California Proposition 22 (Business & Professions Code Section 7451).

PROP 22 REQUIREMENTS
Under Prop 22, your company is required to ensure that my earnings (excluding tips) equal at least 120% of the applicable minimum wage for engaged time, plus $0.35 per engaged mile for vehicle expenses.

CALCULATION OF AMOUNT OWED
During the period [DATE RANGE], I worked the following engaged time and miles:
- Total engaged hours: [HOURS]
- Total engaged miles: [MILES]
- Applicable minimum wage: $[RATE]/hr
- 120% of minimum wage: $[RATE x 1.2]/hr

Minimum earnings owed:
- Time: [HOURS] x $[RATE] = $[AMOUNT]
- Mileage: [MILES] x $0.35 = $[AMOUNT]
- TOTAL MINIMUM: $[TOTAL]

I received only $[AMOUNT RECEIVED] in base pay (excluding tips) during this period.

DEMAND
I demand immediate payment of $[DIFFERENCE] representing the shortfall between my guaranteed minimum earnings and actual payment received.

Please respond within 14 days. Failure to pay may result in a complaint to the California Labor Commissioner and/or legal action.
Mileage Underpayment Demand
I am writing regarding the underpayment of mileage reimbursement during my deliveries for [PLATFORM].

Under Proposition 22, I am entitled to receive $0.35 per engaged mile driven. However, my records indicate a significant discrepancy between the miles I actually drove while engaged and the miles for which I was compensated.

Specifically:
- My tracking app recorded [ACTUAL MILES] engaged miles during [PERIOD]
- Your platform credited me for only [PLATFORM MILES] engaged miles
- Discrepancy: [DIFFERENCE] miles
- Underpayment: [DIFFERENCE] x $0.35 = $[AMOUNT]

I request an audit of my engaged miles and immediate payment of $[AMOUNT] for unpaid mileage reimbursement.

Please also provide documentation explaining how your platform calculates "engaged miles" and why my recorded miles differ from your calculations.
Tip Misallocation Complaint
I am concerned that [PLATFORM] may be improperly using customer tips to satisfy the Prop 22 earnings guarantee rather than paying tips on top of the guaranteed minimum.

Under Prop 22, the 120% minimum wage guarantee must be calculated based on base pay BEFORE tips. Tips must be paid in addition to this guarantee, not used to offset it.

My records show:
- Pay periods where my base pay alone was below the guarantee
- No "guarantee adjustment" payment was made
- My total earnings (including tips) exceeded the guarantee

This suggests tips are being counted toward the guarantee, which violates Prop 22.

I demand:
1. A detailed breakdown of how my guarantee was calculated for each pay period in [DATE RANGE]
2. Confirmation that tips were not included in the guarantee calculation
3. Payment of any shortfall if tips were improperly counted

Please respond within 14 days with the requested information.

🚀 Next Steps

Here's how to pursue your wage claim against a delivery platform.

1. Gather Your Records

Collect comprehensive documentation:

  • Download all earnings statements from the app
  • Request your complete data via CCPA
  • Export data from any mileage tracking apps you use
  • Calculate what you should have been paid vs. actual
2. File Internal Complaint

Start with the platform's internal process:

  • Contact driver support with specific calculations
  • Reference Prop 22 requirements by statute number
  • Keep records of all communications
  • Set deadline for response (14-21 days)
3. Send Formal Demand Letter

If internal complaint fails:

  • Send formal demand letter via certified mail
  • Include specific calculations of amount owed
  • Reference applicable law (B&P Code 7451)
  • Set deadline and mention potential legal action
4. File Complaint or Legal Action

If demand is ignored or rejected:

  • Labor Commissioner: File wage claim (may have jurisdiction issues for Prop 22)
  • Small Claims Court: For claims up to $10,000
  • Arbitration: Check your driver agreement for arbitration requirements
  • Class/Representative Action: May be available for widespread violations

⚠ Arbitration Clauses

Most delivery platform agreements require disputes to go through arbitration rather than court. Check your agreement and whether you opted out of arbitration within 30 days of signing up. PAGA claims may still be available regardless of arbitration clauses.

Not Getting Paid What You're Owed?

I personally handle gig worker wage claims in California. Consultation to evaluate your case.

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