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HomeBusiness and Professions CodeDiv. 3Ch. 10.5Art. 6§ 7463 App-Based Driver Definitions

§ 7463 App-Based Driver Definitions

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 7463 App-Based Driver Definitions

Key Takeaways

  • •This law defines special words used for app-based drivers (like Uber or DoorDash drivers) in California.
  • •It explains what 'engaged time' and 'engaged miles' mean—basically, the time and distance a driver spends on a trip after accepting a ride or delivery request until they finish it.
  • •The law also talks about health insurance plans for these drivers, calling it 'Qualifying health plan'—this means a plan the driver buys themselves, not through work or government programs like Medicare.
  • •It sets rules for companies that hire these drivers, like how they must track time and miles, and what counts as a valid ride or delivery.

Example

If you drive for Uber and pick up a passenger, the time from when you accept the ride until you drop them off is called 'engaged time'. If the passenger cancels the ride, that time doesn’t count.

The law makes sure drivers are only paid for the time they’re actually working on a ride or delivery. If someone cancels, the driver doesn’t get paid for that time.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 7463 App-Based Driver Definitions

For purposes of this chapter, the following definitions shall apply: (a) “App-based driver” means an individual who is a DNC courier, TNC driver, or TCP driver or permit holder; and for whom the conditions set forth in subdivisions (a) to (d), inclusive, of Section 7451 are satisfied. (b) “Average ACA contribution” means 82 percent of the dollar amount of the average monthly Covered California premium. (c) “Average monthly Covered California premium” equals the dollar amount published pursuant to subdivision (g) of Section 7454. (d) “Covered California” means the California Health Benefit Exchange, codified in Title 22 (commencing with Section 100500) of the Government Code. (e) “Customer” means one or more natural persons or business entities. (f) “Delivery network company” (DNC) means a business entity that maintains an online-enabled application or platform used to facilitate delivery services within the State of California on an on-demand basis, and maintains a record of the amount of engaged time and engaged miles accumulated by DNC couriers. Deliveries are facilitated on an on-demand basis if DNC couriers are provided with the option to accept or decline each delivery request and the DNC does not require the DNC courier to accept any specific delivery request as a condition of maintaining access to the DNC’s online-enabled application or platform. (g) “Delivery network company courier” (DNC courier) means an individual who provides delivery services through a DNC’s online-enabled application or platform. (h) “Delivery services” means the fulfillment of delivery requests, meaning the pickup from any location of any item or items and the delivery of the items using a passenger vehicle, bicycle, scooter, walking, public transportation, or other similar means of transportation, to a location selected by the customer located within 50 miles of the pickup location. A delivery request may include more than one, but not more than 12, distinct orders placed by different customers. Delivery services may include the selection, collection, or purchase of items by a DNC courier provided that those tasks are done in connection with a delivery that the DNC courier has agreed to deliver. Delivery services do not include deliveries that are subject to Section 26090, as that section read on October 29, 2019. (i) “Engaged miles” means all miles driven during engaged time in a passenger vehicle that is not owned, leased, or rented by the network company. (j) (1) “Engaged time” means, subject to the conditions set forth in paragraph (2), the period of time, as recorded in a network company’s online-enabled application or platform, from when an app-based driver accepts a rideshare request or delivery request to when the app-based driver completes that rideshare request or delivery request. (2) (A) Engaged time shall not include the following: (i) Any time spent performing a rideshare service or delivery service after the request has been canceled by the customer. (ii) Any time spent on a rideshare service or delivery service where the app-based driver abandons performance of the service prior to completion. (B) Network companies may also exclude time if doing so is reasonably necessary to remedy or prevent fraudulent use of the network company’s online-enabled application or platform. (k) “Local government” means a city, county, city and county, charter city, or charter county. (l) “Network company” means a business entity that is a DNC or a TNC. (m) “Passenger vehicle” means a passenger vehicle as defined in Section 465 of the Vehicle Code. (n) “Qualifying health plan” means a health insurance plan in which the app-based driver is the subscriber, that is not sponsored by an employer, and that is not a Medicare or Medicaid plan. (o) “Rideshare service” means the transportation of one or more persons. (p) “Transportation network company” (TNC) has the same meaning as the definition contained in subdivision (c) of Section 5431 of the Public Utilities Code. (q) “Transportation network company driver” (TNC driver) has the same meaning as the definition of driver contained in subdivision (a) of Section 5431 of the Public Utilities Code. (r) “Charter-party carrier of passengers” (TCP) shall have the same meaning as the definition contained in Section 5360 of the Public Utilities Code, provided the driver is providing rideshare services using a passenger vehicle through a network company’s online-enabled application or platform. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.)

Last verified: January 23, 2026

Key Terms

covered californiaapp-based driverdelivery network company (dnc)engaged timedelivery servicesinsurancebenefithealth

Related Statutes

  • § 7454 Driver Healthcare Subsidy
  • § 7449 App-Based Driver Flexibility
  • § 7450 App-Based Driver Protections
  • § 7464 App-Based Driver State Regulations
  • § 7466 Emergency Regulations Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 7463.
View Official Source