Per-Mile Compensation Annual Adjustment for App-based Drivers
Annual Adjustment of the Per-Mile Compensation Rate for App-based Transportation and Delivery Drivers
California voters approved Proposition 22 on the November 2020 general election ballot, which classified drivers for app-based transportation and delivery companies as independent contractors.
Proposition 22, codified in state law under the Business and Professional Code, section 7453(d)(4) (i), assigned responsibility to the State Treasurer’s Office (STO) for annually calculating and publishing adjustments to the per-mile compensation rate beyond the initial rate calculated in 2021.
Annual Adjustment
| Calendar Year | Annual CPI-U Δ% | Per-Mile Rate |
|---|---|---|
| 2021 | - | $0.30 |
| 2022 | 6.81% | $0.32 |
| 2023 | 7.11% | $0.34 |
| 2024 | 3.14% | $0.35 |
In calculating the annual adjustment to the per-mile rate for any given calendar year, we used the annual rate of CPI-U published for the month of November for the year prior to the adjusted year. For example, the adjusted per-mile rate for calendar 2024 was calculated using the annual CPI-U rate for November 2023, which was published by the US Bureau of Statistics in December 2023.