USA: Report finds loopholes in ballot initiative proposed by Lyft & Uber against AB 5 bill
"Uber, Lyft say proposed California ballot measure is a good deal for drivers. Economists disagree", 11 November 2019
...[Uber, Lyft and DoorDash] officially filed the “Protect App-Based Drivers and Services Act”...saying it will help workers maintain independence without forgoing benefits that would be mandatory under AB 5...
...But a new report...concluded that loopholes in the proposal could leave some drivers with less than $6 an hour...
...While the ballot initiative claims Lyft and Uber will guarantee drivers at least 120% of the minimum wage, the analysts concluded that instead of a promised $15.60, the actual wage paid could end up being roughly $5.64 per hour...
...[The analysts] said the guarantee doesn’t apply to the time spent between passengers...so a third of their work hours...wouldn’t count...By their assessment, under-reimbursed deductions for gas, wear and tear, and mileage...[leaves] drivers with only $5.55 per hour.
Recognizing the companies' planned health care subsidy, the academics boosted the total by $1.22, but then took out an additional $1.13 from the total for the amount of payroll taxes the independent contractors would have to cover...and...other benefits required by law for employees. The $5.64 left... comes in at about a third of the required minimum pay for drivers under a new standard already enforced in New York City...
...Uber economist Alison Stein...takes issue with the characterization that drivers aren’t paid for a third of their time...emphasizing that app-users might be idling, running personal errands, or working for another platform during that time...[and argues] that payments made during that time would add requirements and structure that would put limits on drivers’ freedom and flexibility...
...She dismissed the....conclusions that the companies’ proposal underpays on reimbursements, arguing that they actually bumped the rate arrived at by an internal analysis that estimated the average cost of a marginal mile to be $0.258. Instead, they've chosen to offer drivers $0.30....