In a surprising turn of events, gig drivers in California discovered they were shortchanged on their vehicle expense reimbursements over 18 months. Uber driver Pablo Gomez and fellow driver and advocate Sergio Avedian stumbled upon the discrepancy, realizing that the adjusted rate mandated by Proposition 22, which was meant to keep pace with inflation, had never been implemented. 

This oversight has potentially deprived gig workers of hundreds of millions of dollars collectively. After bringing attention to the issue, the state treasurer's office finally published the adjusted rate, prompting companies like Uber and DoorDash to swiftly issue back pay to drivers. The incident highlights the complexities of gig worker laws and the challenges faced by drivers in securing fair compensation.

Gomez always made a point to understand the laws and regulations that govern his trade. When Proposition 22, the controversial ballot measure that redefined the employment status of gig workers, was passed in 2020, Gomez studied it meticulously. Little did he know that this attention to detail would lead to a significant financial breakthrough for gig drivers in the state. Proposition 22, which overturned a law that classified gig workers as employees, promised a host of partial benefits in place of traditional employee rights. 

One such benefit was a provision for a small reimbursement for vehicle expenses, with the rate adjusted annually to account for inflation. However, after a thorough analysis of the law, Gomez and Avedian discovered that the adjusted rate had never been implemented, despite the requirement to do so.

While a mere two to four cents per mile may seem insignificant, it accumulates quickly for drivers covering hundreds of miles each day. Over the course of a year, these seemingly negligible amounts can add up to hundreds or even thousands of dollars per driver. With almost 1.3 million gig app drivers in California, the total potential loss could reach tens or even hundreds of millions of dollars. 

The issue came to light when Gomez and Avedian were discussing recent news regarding the legal status of Proposition 22. They realized that the adjusted rate for vehicle expenses had not been changed, even though it was stipulated by the law. 

After contacting the state treasurer's office, Gomez took to social media to raise awareness and question the delay in implementing the adjustment. California Treasurer Fiona Ma eventually responded, announcing that the adjusted rate had been published. In response to the revelation, companies like Uber and DoorDash swiftly began issuing back pay to drivers. 

However, the question remains as to why drivers were not paid the adjusted rate from the beginning. Uber blamed the state treasurer's office for not publishing the rate, while the office defended itself by stating that the law had been deemed unenforceable due to legal uncertainty. The confusion surrounding the issue has led to a great deal of frustration and financial loss for gig workers who were already struggling to make minimum wage.

Veena Dubal, a professor at the UC Hastings College of the Law, argues that the confusion was intentional. Dubal suggests that gig app companies purposely designed Proposition 22 to be convoluted, aiming to undermine workers' rights and reduce their wages. The revelation of the unpaid reimbursements serves as a stark reminder of the exploitative nature of the gig economy. While the back pay provides some relief to gig workers, it also highlights the need for greater transparency and accountability in the gig economy. 

Avedian, determined to hold app companies accountable, now seeks to uncover how the funds collected through the California Driver Benefits fee are being utilized, as there is currently no public accounting of these funds. The incident serves as a wake-up call, shedding light on a broken system that exploits both workers and consumers.