App-based Drivers and ServicesBenefits

Section § 7454

Explanation

This law requires network companies to provide a healthcare subsidy to app-based drivers that qualifies for it based on the amount of time they are engaged with the company's platform. If drivers average 25 hours or more a week over a quarter, they get a subsidy equal to 100% of the average monthly healthcare premium through Covered California. If they average between 15 and 25 hours, they get a 50% subsidy. Drivers must provide proof of enrollment in a health plan to receive this subsidy. Companies must notify drivers of their hours and provide subsidies either at the quarter's end or upon proof of enrollment.

Covered California can update regulations to help drivers enroll in healthcare plans, and multiple subsidies can be received from different companies within the same quarter. However, this law would no longer be valid if a universal healthcare system is implemented. Covered California must publish average premiums yearly.

Healthcare Subsidy. (a) Consistent with the average contributions required under the Affordable Care Act (ACA), a network company shall provide a quarterly health care subsidy to qualifying app-based drivers as set forth in this section. An app-based driver that averages the following amounts of engaged time per week on a network company’s platform during a calendar quarter shall receive the following subsidies from that network company:
(1)CA Business & Professions Code § 7454(1) For an average of 25 hours or more per week of engaged time in the calendar quarter, a payment greater than or equal to 100 percent of the average ACA contribution for the applicable average monthly Covered California premium for each month in the quarter.
(2)CA Business & Professions Code § 7454(2) For an average of at least 15 but less than 25 hours per week of engaged time in the calendar quarter, a payment greater than or equal to 50 percent of the average ACA contribution for the applicable average monthly Covered California premium for each month in the quarter.
(b)CA Business & Professions Code § 7454(b) At the end of each earnings period, a network company shall provide to each app-based driver the following information:
(1)CA Business & Professions Code § 7454(b)(1) The number of hours of engaged time the app-based driver accrued on the network company’s online-enabled application or platform during that earnings period.
(2)CA Business & Professions Code § 7454(b)(2) The number of hours of engaged time the app-based driver has accrued on the network company’s online-enabled application or platform during the current calendar quarter up to that point.
(c)CA Business & Professions Code § 7454(c) Covered California may adopt or amend regulations as it deems appropriate to permit app-based drivers receiving subsidies pursuant to this section to enroll in health plans through Covered California.
(d)Copy CA Business & Professions Code § 7454(d)
(1)Copy CA Business & Professions Code § 7454(d)(1) As a condition of providing the health care subsidy set forth in subdivision (a), a network company may require an app-based driver to submit proof of current enrollment in a qualifying health plan. Proof of current enrollment may include, but is not limited to, health insurance membership or identification cards, evidence of coverage and disclosure forms from the health plan, or claim forms and other documents necessary to submit claims.
(2)CA Business & Professions Code § 7454(d)(2) An app-based driver shall have not less than 15 calendar days from the end of the calendar quarter to provide proof of enrollment as set forth in paragraph (1).
(3)CA Business & Professions Code § 7454(d)(3) A network company shall provide a health care subsidy due for a calendar quarter under subdivision (a) within 15 days of the end of the calendar quarter or within 15 days of the app-based driver’s submission of proof of enrollment as set forth in paragraph (1), whichever is later.
(e)CA Business & Professions Code § 7454(e) For purposes of this section, a calendar quarter refers to the following four periods of time:
(1)CA Business & Professions Code § 7454(e)(1) January 1 through March 31.
(2)CA Business & Professions Code § 7454(e)(2) April 1 through June 30.
(3)CA Business & Professions Code § 7454(e)(3) July 1 through September 30.
(4)CA Business & Professions Code § 7454(e)(4) October 1 through December 31.
(f)CA Business & Professions Code § 7454(f) Nothing in this section shall be interpreted to prevent an app-based driver from receiving a health care subsidy from more than one network company for the same calendar quarter.
(g)CA Business & Professions Code § 7454(g) On or before December 31, 2020, and on or before each September 1 thereafter, Covered California shall publish the average statewide monthly premium for an individual for the following calendar year for a Covered California bronze health insurance plan.
(h)CA Business & Professions Code § 7454(h) This section shall become inoperative in the event the United States or the State of California implements a universal health care system or substantially similar system that expands coverage to the recipients of subsidies under this section.
healthcare subsidy app-based drivers Covered California

Section § 7455

Explanation

This law requires network companies, like rideshare services, to have specific insurance coverage if they operate in California for more than 90 days. They must provide occupational accident insurance for app-based drivers that covers medical expenses up to $1 million and compensates for lost income if injuries happen while the driver is online. This compensation equals about 66% of the driver's average weekly earnings from all companies for up to two years.

Additionally, the law mandates accidental death insurance for the driver's dependents if the driver dies while online. Insurance is required to cover active app-based drivers and vehicles during rides or deliveries, and companies must also have $1 million in automobile liability insurance for accidents that occur during these times. The law clarifies that coverage does not apply if the driver is doing personal activities or has multiple platform engagements at the time of the accident.

Loss and Liability Protection. No network company shall operate in California for more than 90 days unless the network company carries, provides, or otherwise makes available the following insurance coverage:
(a)CA Business & Professions Code § 7455(a) For the benefit of app-based drivers, occupational accident insurance to cover medical expenses and lost income resulting from injuries suffered while the app-based driver is online with a network company’s online-enabled application or platform. Policies shall at a minimum provide the following:
(1)CA Business & Professions Code § 7455(a)(1) Coverage for medical expenses incurred, up to at least one million dollars ($1,000,000).
(2)Copy CA Business & Professions Code § 7455(a)(2)
(A)Copy CA Business & Professions Code § 7455(a)(2)(A) Disability payments equal to 66 percent of the app-based driver’s average weekly earnings from all network companies as of the date of injury, with minimum and maximum weekly payment rates to be determined in accordance with subdivision (a) of Section 4453 of the Labor Code for up to the first 104 weeks following the injury.
(B)CA Business & Professions Code § 7455(a)(2)(A)(B) “Average weekly earnings” means the app-based driver’s total earnings from all network companies during the 28 days prior to the covered accident divided by four.
(b)CA Business & Professions Code § 7455(b) For the benefit of spouses, children, or other dependents of app-based drivers, accidental death insurance for injuries suffered by an app-based driver while the app-based driver is online with the network company’s online-enabled application or platform that result in death. For purposes of this subdivision, burial expenses and death benefits shall be determined in accordance with Section 4701 and Section 4702 of the Labor Code.
(c)CA Business & Professions Code § 7455(c) For the purposes of this section, “online” means the time when an app-based driver is utilizing a network company’s online-enabled application or platform and can receive requests for rideshare services or delivery services from the network company, or during engaged time.
(d)CA Business & Professions Code § 7455(d) Occupational accident insurance or accidental death insurance under subdivisions (a) and (b) shall not be required to cover an accident that occurs while online but outside of engaged time where the injured app-based driver is in engaged time on one or more other network company platforms or where the app-based driver is engaged in personal activities. If an accident is covered by occupational accident insurance or accidental death insurance maintained by more than one network company, the insurer of the network company against whom a claim is filed is entitled to contribution for the pro-rata share of coverage attributable to one or more other network companies up to the coverages and limits in subdivisions (a) and (b).
(e)CA Business & Professions Code § 7455(e) Any benefits provided to an app-based driver under subdivision (a) or (b) of this section shall be considered amounts payable under a worker’s compensation law or disability benefit for the purpose of determining amounts payable under any insurance provided under Article 2 (commencing with Section 11580) of Chapter 1 of Part 3 of Division 2 of the Insurance Code.
(f)Copy CA Business & Professions Code § 7455(f)
(1)Copy CA Business & Professions Code § 7455(f)(1) For the benefit of the public, a DNC as defined in Section 7463 shall maintain automobile liability insurance of at least one million dollars ($1,000,000) per occurrence to compensate third parties for injuries or losses proximately caused by the operation of an automobile by an app-based driver during engaged time in instances where the automobile is not otherwise covered by a policy that complies with subdivision (b) of Section 11580.1 of the Insurance Code.
(2)CA Business & Professions Code § 7455(f)(2) For the benefit of the public, a TNC as defined in Section 7463 shall maintain liability insurance policies as required by Article 7 (commencing with Section 5430) of Chapter 8 of Division 2 of the Public Utilities Code.
(3)CA Business & Professions Code § 7455(f)(3) For the benefit of the public, a TCP as defined in Section 7463 shall maintain liability insurance policies as required by Article 4 (commencing with Section 5391) of Chapter 8 of Division 2 of the Public Utilities Code.
network company requirements insurance coverage app-based drivers