Uber driver in CA — am I actually an employee under AB5 or still contractor?

Been driving for Uber/Lyft in LA for 2 years. Still getting 1099'd. With AB5 I thought we were supposed to be employees now?

I want actual employee benefits - health insurance, unemployment, workers comp. Can I force them to reclassify me? What are my rights here?

Prop 22 basically carved out an exception for rideshare/delivery drivers. So AB5 doesn't apply to you the same way it does to other contractors.

You're still a contractor but with some added benefits. It's complicated.

This is the most confusing area of California employment law right now. Here's the timeline:

• AB5 (2020): Required companies to classify workers as employees using the ABC test. Uber/Lyft drivers would have been employees.
• Prop 22 (Nov 2020): Ballot initiative funded by Uber/Lyft that exempted app-based drivers from AB5. Passed with 58% of vote.
• Alameda Superior Court (Aug 2021): Ruled Prop 22 unconstitutional.
• California Appeals Court (Mar 2023): Reversed that decision - Prop 22 is constitutional and valid.

So right now, you are classified as an independent contractor under Prop 22, NOT an employee under AB5.

So I just don't get benefits then? That's BS. What does Prop 22 actually give me?

Prop 22 does provide some protections (though not the same as employee status):

• Earnings guarantee: 120% of local minimum wage for "engaged time" (when you have a passenger or are en route to pickup)
• Healthcare subsidy: If you average 15+ hours/week of engaged time, you get a stipend toward health insurance (amount depends on hours worked)
• Occupational accident insurance: Coverage for injuries during engaged time
• Vehicle insurance: $1M liability coverage while driving
• Anti-discrimination protections

What you DON'T get that employees get: unemployment insurance, workers comp (you get occupational accident insurance instead), overtime pay, meal/rest breaks, employer-paid health insurance, paid sick leave.

The "engaged time" thing is the catch. You only get minimum wage for time with a passenger. All the time you're sitting around waiting for rides doesn't count.

I tracked it for a month - my "engaged time" was only about 60% of my actual working hours. So that 120% minimum wage is really more like 72% if you include wait time.

That's exactly my issue. I'm "working" 50 hours a week but only getting paid for maybe 30. And the healthcare stipend is like $400/month, which doesn't come close to covering a real plan.

Is there any way to challenge this? Any lawsuits I can join?

There are ongoing legal challenges, but Prop 22 has survived multiple court tests so far. The California Supreme Court declined to hear the most recent challenge in July 2024.

Your main recourses:

• Enforce Prop 22 protections: If Uber/Lyft isn't paying you the earnings guarantee or healthcare stipend you're entitled to under Prop 22, you can file a complaint with the California Labor Commissioner
• Class actions: There are ongoing class action lawsuits challenging whether Uber/Lyft properly calculates the earnings guarantees
• Legislative advocacy: Some legislators want to repeal or modify Prop 22, but that requires another ballot measure or 7/8 legislative vote (Prop 22 included that restriction)

I drove for 3 years and finally gave up. The contractor status means you're absorbing all the costs - vehicle depreciation, maintenance, gas, insurance. After expenses my effective hourly was below minimum wage.

One thing you CAN do is deduct all those expenses on Schedule C since you're self-employed. Standard mileage deduction is 67 cents/mile for 2024, 70 cents for 2025. That helps at tax time at least.

Yeah I do the mileage deduction. Helps some but still feels like I'm getting screwed compared to if I was W-2.

Are there any other states that classified rideshare as employees? Wondering if I should just move lol.

No state has successfully reclassified rideshare drivers as employees. Massachusetts tried with a 2024 ballot measure (Question 3) but it failed. New York has some additional protections for drivers but they're still contractors.

The gig companies have spent hundreds of millions on ballot measures and lobbying to maintain contractor status. California's Prop 22 was the template - they've pushed similar measures in other states.

Bottom line: contractor status for rideshare is not changing anytime soon. If you want employment benefits, you'll need to transition to traditional employment. Many logistics companies, delivery services, and transportation companies do hire W-2 drivers.

Appreciate all the info. Frustrating but at least I understand the situation now. Going to look into those class actions about the earnings guarantee calculations - pretty sure Uber has been shorting me on that.

Revisiting this thread because there's been a significant development. In October 2025, a federal judge ruled that parts of Prop 22 violate the National Labor Relations Act. The ruling says that Prop 22's restrictions on driver organizing and collective bargaining are illegal under federal law.

This doesn't mean we're automatically employees now, but it opens the door for drivers to organize and collectively negotiate with Uber/Lyft without retaliation. Some drivers in SF are already forming a union-like group.

The case is being appealed but it's the first major legal victory against Prop 22 since it passed. Might be worth following if you're interested in pushing for better protections.