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Massachusetts House Bill H4256

Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4256 Compare Versions

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22 1HOUSE . . . . . . . . . . . . . . . No. 4256
33 The Commonwealth of Massachusetts
44 ——————
55 INITIATIVE PETITION OF CHARLES DEWEY ELLISON, III AND
66 OTHERS.
77 OFFICE OF THE SECRETARY.
88 BOSTON, JANUARY 16, 2024.
99 Steven T. James
1010 Clerk of the House of Representatives
1111 State House
1212 Boston, Massachusetts 02133
1313 Sir: — I herewith transmit to you, in accordance with the requirements
1414 of Article XLVIII of the Amendments to the Constitution an “Initiative Petition
1515 for a Law Defining and Regulating the Relationship Between Network
1616 Companies and App-Based Drivers for Purposes of the General and Special
1717 Laws,” signed by ten qualified voters and filed with this department on or before
1818 December 6, 2023, together with additional signatures of qualified voters in the
1919 number of 91,666, being a sufficient number to comply with the Provisions of
2020 said Article.
2121
2222 Sincerely,
2323 WILLIAM FRANCIS GALVIN
2424 Secretary of the Commonwealth.
2525 AN INITIATIVE PETITION.
2626 Pursuant to Article XLVIII of the Amendments to the Constitution of the
2727 Commonwealth, as amended, the undersigned qualified voters of the
2828 Commonwealth, ten in number at least, hereby petition for the enactment into
2929 law of the following measure: 2 of 21
3030 FILED ON: 1/23/2024
3131 HOUSE . . . . . . . . . . . . . . . No. 4256
3232 The Commonwealth of Massachusetts
3333 _______________
3434 In the One Hundred and Ninety-Third General Court
3535 (2023-2024)
3636 _______________
3737 An Act defining and regulating the relationship between network companies and app-based
3838 drivers for purposes of the General and Special Laws.
3939 Be it enacted by the People, and by their authority, as follows:
4040 1 SECTION 1. The General Laws are hereby amended by inserting after chapter 159A1/2
4141 2the following chapter:
4242 3 Chapter 159AA
4343 4 Section 1. Title. This chapter shall be known as the "Relationship Between Network
4444 5Companies and App-Based Drivers Act."
4545 6 Section 2. Purpose. The purpose of this chapter is to define and regulate the relationship
4646 7between network companies and app-based drivers. The chapter requires network companies to
4747 8provide app-based drivers with minimum compensation, healthcare stipends, earned paid sick
4848 9time, and occupational accident insurance that will operate uniformly throughout the
4949 10commonwealth, while protecting app-based drivers' freedom and flexibility to choose when, how
5050 11long, how often, and for whom they work.
5151 12 Section 3. App-Based Driver Classification and Contractual Requirements. 3 of 21
5252 13 (a) Notwithstanding any general or special law, or any rule or regulation promulgated
5353 14thereunder, for purposes of the general and special laws, an app-based driver, as defined in
5454 15section 4 of this chapter, is not an employee with respect to his or her relationship with a network
5555 16company and a network company is not an employer with respect to its relationship with an app-
5656 17based driver.
5757 18 (b) The requirements in this section and sections 5 through 8 of this chapter are
5858 19incorporated into every contract made, modified, or renewed on or after the effective date of this
5959 20chapter between an app-based driver and a network company with regard to delivery services or
6060 21transportation services. Such contracts may contain supplemental terms that are in addition to
6161 22those required by this chapter.
6262 23 (c) A network company shall not terminate a contract with an app-based driver, except on
6363 24grounds specified in the contract or as is required by law.
6464 25 (d) A contract between a network company and an app-based driver shall provide app-
6565 26based drivers whose contracts are terminated by the network company the opportunity to appeal
6666 27such termination with the network company.
6767 28 (e) A network company shall not, unless based upon a bona fide occupational
6868 29qualification or public or app-based driver safety need, refuse to contract with or terminate the
6969 30contract of an app-based driver based upon race, color, age, religious creed, national origin, sex,
7070 31gender identity, genetic information, ancestry, active military personnel, status as a veteran,
7171 32pregnancy or a condition related to said pregnancy including, but not limited to, lactation or the
7272 33need to express breast milk for a nursing child, or the handicap of a qualified handicapped person 4 of 21
7373 34or sexual orientation, which shall not include persons whose sexual orientation involves minor
7474 35children as the sex object.
7575 36 (f) Nothing in this chapter applies to any contract in existence before the effective date of
7676 37this chapter.
7777 38 Section 4. Definitions. For the purposes of this chapter, the following words shall have
7878 39the following meanings:
7979 40 "App-based driver", a person who is a DNC courier, a TNC driver, or both, who has a
8080 41contract with a network company, and for whom the following requirements are met:
8181 42 (a) the network company does not unilaterally prescribe specific dates, times of day, or a
8282 43minimum number of hours during which the app-based driver must be logged into the network
8383 44company's online-enabled application or platform;
8484 45 (b) the network company may not terminate the contract of the app-based driver for not
8585 46accepting a specific transportation service or delivery service request except where refusal
8686 47constitutes a violation of governing federal, state, or local laws or regulations;
8787 48 (c) the network company does not restrict the app-based driver from performing services
8888 49through other network companies except while performing services through the network
8989 50company's online-enabled application or platform; and
9090 51 (d) the network company does not contractually restrict the app-based driver from
9191 52working in any other lawful occupation or business.
9292 53 "Average ACA contribution", 82 per cent of the dollar amount of the average monthly
9393 54Health Connector premium. 5 of 21
9494 55 "Average hourly earnings", an app-based driver's earnings during the 365 days
9595 56immediately prior to the day that earned paid sick time is used, divided by the total hours of
9696 57engaged time worked by the app-based driver on that network company's online-enabled
9797 58application or platform during that period.
9898 59 "Average monthly Health Connector premium", the dollar amount published pursuant to
9999 60subsection (f) of section 6 of this chapter.
100100 61 "Contract", a written agreement, which may be electronic, between an app-based driver
101101 62and a network company.
102102 63 "Delivery Network Company" or "DNC", a business entity that (a) maintains an online-
103103 64enabled application or platform used to facilitate delivery services within the Commonwealth
104104 65and (b) maintains a record of the amount of engaged time and engaged miles accumulated by
105105 66DNC couriers.
106106 67 "Delivery Network Company Courier" or "DNC courier", a person who provides delivery
107107 68services through a DNC's online-enabled application or platform.
108108 69 "Delivery services", the fulfillment of a delivery request, meaning the pickup from any
109109 70location in the Commonwealth of any item or items and the delivery of the items using a private
110110 71passenger motor vehicle, bicycle, electric bicycle, motorized bicycle, scooter, motorized scooter,
111111 72walking, public transportation, or other similar means of transportation, to a location selected by
112112 73the customer located within 50 miles of the pickup location. A delivery request may include
113113 74more than 1, but not more than 30, distinct orders placed by different customers. Delivery
114114 75services may include the selection, collection, or purchase of items by a DNC courier, as well as 6 of 21
115115 76other tasks incident to a delivery. Delivery services do not include assistance with residential
116116 77moving services.
117117 78 "Earnings", all amounts, including incentives and bonuses, remitted to an app-based
118118 79driver by a network company, provided that the amount does not include toll fees, cleaning fees,
119119 80airport fees, or other customer pass-throughs. Amounts remitted are net of service fees or similar
120120 81fees charged to the app-based driver by the network company. Amounts remitted do not include
121121 82tips or gratuities.
122122 83 "Earnings period", a recurring period of time, set by the network company, not to exceed
123123 8414 consecutive calendar days.
124124 85 "Engaged miles", all miles traveled during engaged time in a private passenger motor
125125 86vehicle that is not owned, leased, or rented by the network company, or any of its affiliates.
126126 87Network companies may exclude miles if doing so is reasonably necessary to remedy or prevent
127127 88fraudulent use of the network company's online-enabled application or platform.
128128 89 "Engaged time", (a) subject to the conditions set forth in subsection (b) in this definition,
129129 90the period of time, as recorded in a network company's online-enabled application or platform,
130130 91from when a app-based driver accepts a request for delivery or transportation services to when
131131 92the driver fulfills that request. For requests that are scheduled in advance and for which the app-
132132 93based driver accepts the request but is not immediately en route to fulfill that request, a driver
133133 94shall only be considered engaged on a network company's platform when the app-based driver is
134134 95en route to fulfill that scheduled request, regardless of when the app-based driver accepted the
135135 96request. 7 of 21
136136 97 (b) Engaged time shall not include (1) any time spent performing delivery or
137137 98transportation services after the request has been cancelled by the customer; or (2) any time spent
138138 99on a request for delivery or transportation services where the app-based driver abandons
139139 100performance of the service prior to completion. Network companies may also exclude time if
140140 101doing so is reasonably necessary to remedy or prevent fraudulent use of the network company's
141141 102online-enabled application or platform.
142142 103 "Health Connector", the Commonwealth Health Insurance Connector Authority
143143 104established by chapter 58 of the acts of 2006 and section 2 of chapter 176Q of the Massachusetts
144144 105General Laws.
145145 106 "Minimum wage", the state mandated minimum wage for all industries as provided by
146146 107section 1 of chapter 151 of the Massachusetts General Laws.
147147 108 "Net earnings", all earnings received by an app-based driver in an earnings period.
148148 109 "Net earnings floor", means the amount determined under subsection (c) of Section 5 of
149149 110this chapter, against which an app-based driver's net earnings are compared.
150150 111 "Network company", a business entity operating as:
151151 112 (a) a delivery network company;
152152 113 (b) a transportation network company; or
153153 114 (c) both.
154154 115 "Person", shall have the same definition as provided in clause twenty-third of section 7 of
155155 116chapter 4 of the Massachusetts General Laws. 8 of 21
156156 117 "Private passenger motor vehicle," any passenger vehicle which has a vehicle weight
157157 118rating or curb weight of 6,000 lbs. or less as per manufacturer's description of said vehicle or is a
158158 119sport utility vehicle, passenger van, or pickup truck.
159159 120 "Qualifying health plan", a health insurance plan in which the app-based driver is the
160160 121subscriber, that is not paid for in frill or in part by any current or former employer, and that is not
161161 122a Medicare or Medicaid plan.
162162 123 "Quarter", each of the following 4 time periods: (a) January 1 through March 31; (b)
163163 124April 1 through June 30; (c) July 1 through September 30; (d) October 1 through December 31.
164164 125 "Transportation network company" or "TNC", has the same meaning as provided in
165165 126section 1 of chapter 159Al/2 of the Massachusetts General Laws.
166166 127 "Transportation network company driver" or "TNC driver", a Transportation network
167167 128driver, as defined in section I of chapter 159A1/2 of the Massachusetts General Laws, that
168168 129provides transportation services, or a person operating a livery vehicle as defined in 540 CMR
169169 1302.00 on a TNC's digital network, as defined in section I of chapter 159A1/2.
170170 131 "Transportation services", the provision of transportation facilitated by the digital
171171 132network, as defined in section I of chapter 159Al/2 of the Massachusetts General Laws, of a
172172 133TNC for which the pickup of the passenger occurs in the Commonwealth.
173173 134 Section 5: Guaranteed Earnings Floor.
174174 135 (a) A network company shall ensure that for each earnings period, an app-based driver is
175175 136compensated at not less than the net earnings floor as set forth in this section. The net earnings
176176 137floor establishes a guaranteed minimum level of compensation for app-based drivers that cannot 9 of 21
177177 138be reduced. In no way does the net earnings floor prohibit app-based drivers from earning a
178178 139higher level of compensation.
179179 140 (b) For each earnings period, a network company shall compare an app-based driver's net
180180 141earnings against the net earnings floor for that app-based driver during the earnings period. In the
181181 142event that the app-based driver's net earnings in the earnings period are less than the net earnings
182182 143floor for that earnings period, the network company shall include an additional sum accounting
183183 144for the difference in the app-based driver's earnings no later than during the next earnings period.
184184 145 (c) For all earnings periods, the net earnings floor shall be the sum of:
185185 146 (i) The product of 120 per cent of the minimum wage and the number of hours of
186186 147engaged time during that earnings period.
187187 148 (ii) (A) The product of the per-mile compensation for vehicle expenses set forth in this
188188 149clause and the total number of engaged miles traveled during that earnings period.
189189 150 (B) After the effective date of this chapter and for the 2025 calendar year, the per-mile
190190 151compensation for vehicle expenses shall be 28 cents per engaged mile. For calendar years after
191191 1522025, the amount per engaged mile shall be adjusted pursuant to the following subsection (d).
192192 153 (d) For calendar years following 2025, the executive office of labor and workforce
193193 154development shall adjust the per-mile compensation amount under subsection (c) annually to
194194 155reflect the percentage increase, if any, in the state minimum wage that is set to take effect that
195195 156calendar year. The executive office of labor and workforce development shall calculate and
196196 157publish the adjustments required by this subsection no later than November 30 of the year prior
197197 158to the increase taking effect. The adjusted compensation rates shall take effect on the later of 10 of 21
198198 159January 1 or the sixty-first day following publication. If the executive office of labor and
199199 160workforce development does not publish an increase as required by this subsection, no increase
200200 161in the compensation amounts shall occur.
201201 162 (e) Nothing in this section shall be interpreted to require a network company to provide a
202202 163particular amount of compensation to an app-based driver for any given transportation or
203203 164delivery request, as long as the app-based driver's net earnings for each earnings period equals or
204204 165exceeds that app-based driver's net earnings floor for that earnings period as set forth in
205205 166subsection (b) of this section.
206206 167 Section 6. Healthcare Stipend.
207207 168 (a) Consistent with the average contributions required under the federal Patient Protection
208208 169and Affordable Care Act, Pub. L. 111-148 (March 23, 2010), a network company shall provide a
209209 170quarterly healthcare stipend to app-based drivers who meet the conditions set forth in this
210210 171section. An app-based driver that averages the following amounts of engaged time per week on a
211211 172network company's platform during a quarter that commences on or after January 1, 2025 shall
212212 173receive the following stipends from that network company:
213213 174 (1) For an average of 25 hours or more per week of engaged time in the quarter, a
214214 175payment greater than or equal to 100 per cent of the average ACA contribution for the applicable
215215 176average monthly Health Connector premium for each month in the quarter.
216216 177 (2) For an average of at least 15 but less than 25 hours per week of engaged time in the
217217 178quarter, a payment greater than or equal to 50 per cent of the average ACA contribution for the
218218 179applicable average monthly Health Connector premium for each month in the quarter. 11 of 21
219219 180 (b) At the end of each earnings period, a network company shall provide to each app-
220220 181based driver the following information:
221221 182 (l) The total number of hours of engaged time the app-based driver recorded in the
222222 183network company's online-enabled application or platform during that earnings period.
223223 184 (2) The number of hours of engaged time the app-based driver has recorded in the
224224 185network company's online-enabled application or platform during the current quarter up to that
225225 186point.
226226 187 (c) The Health Connector may adopt or amend regulations as it deems appropriate to
227227 188implement this section, including to permit app-based drivers receiving stipends pursuant to this
228228 189section to enroll in health plans offered through the Health Connector.
229229 190 (d)(l) As a condition of providing the healthcare stipend set forth in subsection (a), a
230230 191network company may require an app-based driver to submit proof of current enrollment in a
231231 192qualifying health plan as of the last day of the quarter for which the stipend would be provided.
232232 193Proof of current enrollment may include, but is not limited to, health insurance membership or
233233 194identification cards, evidence of coverage and disclosure forms from the health plan, or claim
234234 195forms and other documents necessary to submit claims.
235235 196 (2) An app-based driver shall have not less than 15 calendar days from the end of the
236236 197quarter to provide proof of enrollment as set forth in paragraph (1) of this subsection.
237237 198 (3) A network company shall provide a healthcare stipend due for a quarter under
238238 199subsection (a) within 15 days of the end of the quarter or within 15 days of the app-based driver's 12 of 21
239239 200submission of proof of enrollment as set forth in paragraph (l) of this subsection, whichever is
240240 201later.
241241 202 (e) Nothing in this section shall be interpreted to prevent an app-based driver from
242242 203receiving a healthcare stipend from more than one network company for the same quarter.
243243 204 (f)(l) On or before 14 days following the effective date of this section, and on or before
244244 205each September 1 thereafter, the Health Connector shall publish the average statewide monthly
245245 206premium paid, or anticipated to be paid, by an individual for the following calendar year for a
246246 207Health Connector bronze tier health insurance plan, or any future successor equivalent plan.
247247 208 (2) When computing the average as required by paragraph (1) of this subsection, the
248248 209Health Connector shall divide the total monthly premium paid, or anticipated to be paid, by all
249249 210enrollees in an individual Health Connector bronze tier health insurance plan, or any future
250250 211successor equivalent plan, by the total number of individuals in the commonwealth who are
251251 212enrolled in, or anticipated to be enrolled in, such plans.
252252 213 (g) This section shall become inoperative in the event that the United States or the
253253 214commonwealth implements a single-payer universal healthcare system or substantially similar
254254 215system that expands coverage to the recipients of stipends under this section.
255255 216 Section 7. Paid Sick Time. Network companies shall provide app-based drivers with
256256 217earned paid sick time as set forth in this section.
257257 218 (a) "Earned paid sick time", is the time provided by a network company to an app-based
258258 219driver as calculated under subsection (c) of this section. For each hour of earned paid sick time 13 of 21
259259 220used by an app-based driver, the network company shall compensate the app-based driver at a
260260 221rate equal to the greater of the following:
261261 222 (l) The app-based driver's average hourly earnings, as defined in section 4 of this chapter;
262262 223or
263263 224 (2) 120 per cent of the minimum wage.
264264 225 (b) An app-based driver shall only use earned paid sick time for the same reasons set
265265 226forth for employees in paragraph (l) through paragraph (4) of subsection (c) of section 148C of
266266 227chapter 149 of the Massachusetts General Laws.
267267 228 (c) A network company shall provide a minimum of one hour of earned paid sick time for
268268 229every 30 hours of engaged time recorded on or after the effective date of this section by an app-
269269 230based driver in the network company's online-enabled application or platform. App-based drivers
270270 231shall be entitled to first use accrued earned paid sick time upon recording 90 hours of engaged
271271 232time on the network company's online-enabled application or platform. From that day forward,
272272 233an app-based driver may use earned sick time as it accrues. A contract between a network
273273 234company and an app-based driver may require the app-based driver to use earned paid sick time
274274 235in increments of up to 4 hours.
275275 236 (d) App-based drivers may carry over up to 40 hours of unused earned paid sick time to
276276 237the next calendar year, but are not entitled to use more than 40 hours in one calendar year.
277277 238Network companies shall not be required to pay out unused earned paid sick time. If an app-
278278 239based driver does not record any engaged time in a network company's online-enabled
279279 240application or platform for 365 or more consecutive days or the app-based driver's contract with 14 of 21
280280 241a network company is terminated, any unused earned paid sick time accrued up to that point with
281281 242that network company shall no longer be valid or recognized.
282282 243 (e) A network company may require certification when an app-based driver makes a
283283 244request to use more than 24 hours of earned paid sick time in a 72-hour period or when
284284 245reasonably necessary to prevent fraud. Any reasonable documentation signed by a health care
285285 246provider indicating the need for earned paid sick time taken shall be deemed acceptable
286286 247certification for absences. Nothing in this section shall be construed to require an app-based
287287 248driver to provide as certification any information from a health care provider that would be in
288288 249violation of federal law.
289289 250 Section 8. Occupational Accident Insurance.
290290 251 (a) For the purposes of this section, the following words shall have the following
291291 252meanings:-
292292 253 (1) "Average weekly earnings", the app-based driver's total earnings from all network
293293 254companies during the 28 days prior to the accident divided by four.
294294 255 (2) "Online", the time when an app-based driver is utilizing a network company's online-
295295 256enabled application or platform and can receive requests for transportation services or delivery
296296 257services from the network company or during engaged time.
297297 258 (3) "Maximum weekly compensation rate", has the same meaning as provided in section
298298 2591 of chapter 152 of the Massachusetts General Laws.
299299 260 (4) "Minimum weekly compensation rate", has the same meaning as provided in section 1
300300 261of chapter 152 of the Massachusetts General Laws. 15 of 21
301301 262 (b) Each network company, within 240 days of the effective date of this chapter, shall
302302 263purchase occupational accident insurance, as described in this section, for all app-based drivers
303303 264who provide transportation or delivery services through the network company's online-enabled
304304 265application or platform.
305305 266 (c) Each network company shall file with the division of insurance, no later than 30 days
306306 267after the commencement of a new policy year, a copy of the policy it has purchased for DNC
307307 268couriers and TNC drivers, respectively. The division of insurance shall be treated by the insurer
308308 269as a certificate holder for purposes of receiving notice of cancellation of the policy.
309309 270 (d) The occupational accident insurance policy required under subsection (b) shall cover
310310 271medical expenses and lost income resulting from injuries suffered while the app-based driver is
311311 272online with a network company's online-enabled application or platform. Policies shall at a
312312 273minimum include a total combined single limit of $1,000,000 per accident and provide for
313313 274payment of benefits to a covered individual as follows:
314314 275 (1) Coverage for medical expenses incurred, up to at least $1,000,000 and for up to 156
315315 276weeks following the injury;
316316 277 (2) Continuous total disability payments, temporary total disability payments, and partial
317317 278disability payments for injuries that occur while the app-based driver is online equal to 66 per
318318 279cent of the app-based driver's average weekly earnings as of the date of injury but not more than
319319 280the maximum weekly compensation rate, unless the average weekly earnings of the app-based
320320 281driver is less than the minimum weekly compensation rate, in which case the weekly
321321 282compensation shall be equal to the app-based driver's average weekly earnings. Payments under
322322 283this paragraph shall be made for up to the first 156 weeks following the injury; 16 of 21
323323 284 (3) For the benefit of spouses, children, or other dependents of app-based drivers,
324324 285accidental death insurance in the amount equal to 66 per cent of the app-based driver's average
325325 286weekly earnings as of the date of injury but not more than the maximum weekly compensation
326326 287rate, unless the average weekly earnings of the app-based driver is less than the minimum weekly
327327 288compensation rate, in which case the weekly compensation shall be equal to the app-based
328328 289driver's average weekly earnings, times 156 weeks for injuries suffered by an app-based driver
329329 290while the app-based driver is online with the network company's online-enabled application or
330330 291platform that result in death; and
331331 292 (4) When injuries suffered by an app-based driver while the app-based driver is online
332332 293result in death, an amount to pay for reasonable burial expenses not to exceed eight times the
333333 294maximum weekly compensation rate.
334334 295 (e) Occupational accident insurance under subsection (d) of this section shall not be
335335 296required to cover an accident that occurs while online but outside of engaged time where the
336336 297injured app-based driver is in engaged time on one or more other network company platforms or
337337 298where the app-based driver is engaged in personal activities. If an accident is covered by
338338 299occupational accident insurance maintained by more than one network company, the insurer of
339339 300the network company against whom a claim is filed is entitled to contribution for the pro-rata
340340 301share of coverage attributable to one or more other network companies up to the coverages and
341341 302limits in subsection (d).
342342 303 (f) Any benefits provided to an app-based driver under this section shall be considered
343343 304amounts payable under an app-based driver's compensation law or disability benefit for the
344344 305purpose of determining amounts payable under any insurance provided under section 113L of 17 of 21
345345 306chapter 175 of the Massachusetts General Laws or for personal injury protection, as defined in
346346 307section 34A of chapter 90 of the Massachusetts General Laws.
347347 308 Section 9. Implementation.
348348 309 Chapter 159AA of the Massachusetts General Laws shall take effect on the later of
349349 310January 1, 2025, or as provided in Article 48 of the Amendments to the Massachusetts
350350 311Constitution, as amended. 18 of 21
351351 FIRST TEN SIGNERS
352352 NameResidenceCity or TownCharles Dewey Ellison, III195 West Canton Street, # 2BostonAbigail Kennedy Horrigan114 Eastern AvenueWoburnBrian Gitschier58 East Springfield Street, # 2 BostonDaniel A. Svirsky248 School StreetWatertownSean A. Rogers9 Atkins Street, # 1BostonCaitlin Donovan16 Fox Run RoadDoverBrendan M. Joyce79 Breakneck RoadSturbridgeTroy B. McHenry402 Ashmont Street, # 1BostonKimberly Ann Ahern15 Pond StreetBostonChristina M. Ellis-Hibbett563 Ashmont StreetBoston 19 of 21
353353 CERTIFICATE OF THE ATTORNEY GENERAL.
354354 September 6, 2023.
355355 Honorable William Francis Galvin
356356 Secretary of the Commonwealth
357357 One Ashburton Place, Room 1705
358358 Boston, Massachusetts 02108
359359 RE: Initiative Petition No. 23-25: Initiative Petition for A Law Defining and
360360 Regulating the Relationship Between Network Companies and App-
361361 Based Drivers for Purposes of the General and Special Laws – Version
362362 B
363363 Dear Secretary Galvin:
364364 In accordance with the provisions of Article 48 of the Amendments to
365365 the Massachusetts Constitution, I have reviewed the above-referenced initiative
366366 petition, which was submitted to me on or before the first Wednesday of August
367367 of this year.
368368 I hereby certify that this measure is in proper form for submission to
369369 the people; that the measure is not, either affirmatively or negatively,
370370 substantially the same as any measure which has been qualified for submission
371371 or submitted to the people at either of the two preceding biennial state elections;
372372 and that it contains only subjects that are related or are mutually dependent and
373373 which are not excluded from the initiative process pursuant to Article 48, the
374374 Initiative, Part 2, Section 2.
375375 In accordance with Article 48, I enclose a fair, concise summary of the
376376 measure.
377377 Sincerely,
378378 ANDREA JOY CAMPBELL,
379379 Attorney General.
380380 Enclosure. 20 of 21
381381 SUMMARY OF 23-25.
382382 This proposed law would specify that rideshare and delivery drivers who accept requests through an online-
383383 enabled application are not “employees” and that rideshare and delivery companies are not “employers” for
384384 purposes of Massachusetts laws. This proposed law would also specify alternative minimum compensation and
385385 benefits for rideshare and delivery drivers.
386386 The proposed law would apply to drivers for rideshare and delivery companies who use digital applications
387387 and who are (1) not required to work specific days or hours; (2) not required to accept specific requests; (3) not
388388 restricted from working with multiple rideshare or delivery companies; and (4) not restricted from working in any
389389 other lawful occupation or business.
390390 The proposed law would require rideshare and delivery companies to provide drivers with a guaranteed
391391 amount of minimum compensation, equal to 120 percent of the Massachusetts minimum wage, for time spent
392392 completing requests for transportation or delivery, plus a per-mile amount for each mile driven in a privately-owned
393393 vehicle while completing a request. The per-mile amount would start at 28 cents and be adjusted yearly to increase
394394 by any percentage increase made to the Massachusetts minimum wage. The minimum compensation calculation
395395 would exclude time spent by a driver between completing one request and accepting another request. A driver
396396 whose earnings, not including tips and gratuities, fall below the minimum compensation amount would be paid the
397397 difference to be brought up to the minimum compensation amount.
398398 The proposed law would require rideshare and delivery companies to provide some drivers with a
399399 healthcare stipend. Drivers who average 25 hours or more per week completing requests for transportation or
400400 delivery services with a company would receive a full stipend for an average individual plan offered through the
401401 Health Connector, and drivers who average between 15 and 25 hours per week completing requests for
402402 transportation or delivery services with a company would receive a 50 percent stipend.
403403 The proposed law would require rideshare and delivery companies to provide drivers with a minimum of
404404 one hour of paid sick time for every 30 hours spent completing requests for transportation or delivery services with
405405 that company.
406406 The proposed law would require rideshare and delivery companies to purchase accident insurance to
407407 provide some disability and medical benefits for drivers who are injured or killed while online with the company’s
408408 application or platform.
409409 The proposed law would prohibit rideshare and delivery companies from terminating the contract of a
410410 driver, or refusing to contract with a driver, based on race, sex, sexual orientation, or other protected characteristics 21 of 21
411411 unless based upon a bona fide occupational qualification or a safety need. Companies would be required to provide a
412412 driver who is terminated with an opportunity to appeal the termination with the network company.
413413 The proposed law would take effect on January 1, 2025.
414414