To make this a concrete example, consider a DoorDash driver. They get an order to drive to a restaurant. Clock starts, they get 15 minutes. The order isn’t ready, so they’re waiting for another 15 minutes, but the clock is stopped. Then they drive to your house, which takes another 15. A 45 minute task, but only 30 minutes counts. “But they’re not working when they’re waiting!” DoorDash cries. But they’re not free to leave, because then they’d lose the entire payout and get blackballed. It’s just a process inefficiency. If the driver worked for the restaurant, they’d still get paid while waiting.
The original law that Prop 22 replaced, addressed this down time, and because of this, Prop 22 was written.
While there maybe reasonable arguments to be made about how gig work is different from full time and traditional contractor work, the most damning part of Prop 22 for me was the 7/8s majority needed to amend the new law. That’s just bullshit.
What you are describing is completely wrong. It's incredible how short sighted people get when they want to go all out and lash at the "evil" gig economy companies. Like really, the wording is publicly available for you to read.
Engaged time is time from accepting the gig, to the time the gig ends. Waiting is included. That's it.
While I wouldn't expect anything like full-time pay, Uber/Lyft et. al. still get a benefit of having drivers on call (lower wait times for their customers). I personally would have liked to see some compensation (within reason) for time spent on call but not on a ride. Not sure how easy it would be to make both a fair and reasonably un-cheatable system, but its something that should have been considered.
However if you incentive being on call no matter what, you get drivers driving to the mountains to get their guaranteed pay.
Your 2nd paragraph is exactly what prop22 added. Now full-time drivers enjoy some benefits.