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 Treasurerís 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

In calculating the annual adjustment for any given calendar year, the STO uses data from the Consumer Price Index for all Urban Consumers (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 year 2023 was calculated using the annual CPI-U rate for November 2022, which was published by the U.S. Bureau of Statistics in December 2022.