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HOUSE . . . . . . . . . . . . . . . No. 4258
The Commonwealth of Massachusetts
——————
INITIATIVE PETITION OF CHARLES DEWEY ELLISON, III AND
OTHERS.
OFFICE OF THE SECRETARY.
BOSTON, JANUARY 16, 2024.
Steven T. James
Clerk of the House of Representatives
State House
Boston, Massachusetts 02133
Sir: — I herewith transmit to you, in accordance with the requirements of
Article XLVIII of the Amendments to the Constitution an “Initiative Petition for
a Law Defining and Regulating the Relationship Between Network Companies
and App-Based Drivers for Certain Purposes of the General Laws,” signed by
ten qualified voters and filed with this department on or before December 6,
2023, together with additional signatures of qualified voters in the number of
90,937, being a sufficient number to comply with the Provisions of said Article.
Sincerely,
WILLIAM FRANCIS GALVIN
Secretary of the Commonwealth.
AN INITIATIVE PETITION.
Pursuant to Article XLVIII of the Amendments to the Constitution of the
Commonwealth, as amended, the undersigned qualified voters of the
Commonwealth, ten in number at least, hereby petition for the enactment into
law of the following measure: 2 of 21
FILED ON: 1/25/2024
HOUSE . . . . . . . . . . . . . . . No. 4258
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
_______________
An Act defining and regulating the relationship between network companies and app-based
drivers for certain purposes of the General Laws.
Be it enacted by the People, and by their authority, as follows:
SECTION 1. The General Laws are hereby amended by inserting after chapter 159A1/2
the following chapter:
Chapter 159AA
Section 1. Title. This chapter shall be known as the "Relationship Between Network
Companies and App-Based Drivers Act."
Section 2. Purpose. The purpose of this chapter is to define and regulate the relationship
between network companies and app-based drivers. The chapter requires network companies to
provide app-based drivers with minimum compensation, healthcare stipends, earned paid sick
time, and occupational accident insurance that will operate uniformly throughout the
commonwealth, while protecting app-based drivers' freedom and flexibility to choose when, how
long, how often, and for whom they work.
Section 3. App-Based Driver Classification and Contractual Requirements. 3 of 21
(a) Notwithstanding any general or special law, or any rule or regulation promulgated
thereunder, for purposes of chapters 149, 151, 151A or 152, an app-based driver, as defined in
section 4 of this chapter, is not an employee with respect to his or her relationship with a network
company and a network company is not an employer with respect to its relationship with an app-
based driver.
(b) The requirements in this section and sections 5 through 8 of this chapter are
incorporated into every contract made, modified, or renewed on or after the effective date of this
chapter between an app-based driver and a network company with regard to delivery services or
transportation services. Such contracts may contain supplemental terms that are in addition to
those required by this chapter.
(c) A network company shall not terminate a contract with an app-based driver, except on
grounds specified in the contract or as is required by law.
(d) A contract between a network company and an app-based driver shall provide app-
based drivers whose contracts are terminated by the network company the opportunity to appeal
such termination with the network company.
(e) A network company shall not, unless based upon a bona fide occupational
qualification or public or app-based driver safety need, refuse to contract with or terminate the
contract of an app-based driver based upon race, color, age, religious creed, national origin, sex,
gender identity, genetic information, ancestry, active military personnel, status as a veteran,
pregnancy or a condition related to said pregnancy including, but not limited to, lactation or the
need to express breast milk for a nursing child, or the handicap of a qualified handicapped person 4 of 21
or sexual orientation, which shall not include persons whose sexual orientation involves minor
children as the sex object.
(f) Nothing in this chapter applies to any contract in existence before the effective date of
this chapter.
Section 4. Definitions. For the purposes of this chapter, the following words shall have
the following meanings:
"App-based driver", a person who is a DNC courier, a TNC driver, or both, who has a
contract with a network company, and for whom the following requirements are met:
(a) the network company does not unilaterally prescribe specific dates, times of day, or a
minimum number of hours during which the app-based driver must be logged into the network
company's online-enabled application or platform;
(b) the network company may not terminate the contract of the app-based driver for not
accepting a specific transportation service or delivery service request except where refusal
constitutes a violation of governing federal, state, or local laws or regulations;
(c) the network company does not restrict the app-based driver from performing services
through other network companies except while performing services through the network
company's online-enabled application or platform; and
(d) the network company does not contractually restrict the app-based driver from
working in any other lawful occupation or business.
"Average ACA contribution", 82 per cent of the dollar amount of the average monthly
Health Connector premium. 5 of 21
"Average hourly earnings", an app-based driver's earnings during the 365 days
immediately prior to the day that earned paid sick time is used, divided by the total hours of
engaged time worked by the app-based driver on that network company's online-enabled
application or platform during that period.
"Average monthly Health Connector premium", the dollar amount published pursuant to
subsection (f) of section 6 of this chapter.
"Contract", a written agreement, which may be electronic, between an app-based driver
and a network company.
"Delivery Network Company" or "DNC", a business entity that (a) maintains an online-
enabled application or platform used to facilitate delivery services within the Commonwealth
and (b) maintains a record of the amount of engaged time and engaged miles accumulated by
DNC couriers.
"Delivery Network Company Courier" or "DNC courier", a person who provides delivery
services through a DNC's online-enabled application or platform.
"Delivery services", the fulfillment of a delivery request, meaning the pickup from any
location in the Commonwealth of any item or items and the delivery of the items using a private
passenger motor vehicle, bicycle, electric bicycle, motorized bicycle, scooter, motorized 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 1, but not more than 30, distinct orders placed by different customers. Delivery
services may include the selection, collection, or purchase of items by a DNC courier, as well as 6 of 21
other tasks incident to a delivery. Delivery services do not include assistance with residential
moving services.
"Earnings", all amounts, including incentives and bonuses, remitted to an app-based
driver by a network company, provided that the amount does not include toll fees, cleaning fees,
airport fees, or other customer pass-throughs. Amounts remitted are net of service fees or similar
fees charged to the app-based driver by the network company. Amounts remitted do not include
tips or gratuities.
"Earnings period", a recurring period of time, set by the network company, not to exceed
14 consecutive calendar days.
"Engaged miles", all miles traveled during engaged time in a private passenger motor
vehicle that is not owned, leased, or rented by the network company, or any of its affiliates.
Network companies may exclude miles if doing so is reasonably necessary to remedy or prevent
fraudulent use of the network company's online-enabled application or platform.
"Engaged time", (a) subject to the conditions set forth in subsection (b) in this definition,
the period of time, as recorded in a network company's online-enabled application or platform,
from when a app-based driver accepts a request for delivery or transportation services to when
the driver fulfills that request. For requests that are scheduled in advance and for which the app-
based driver accepts the request but is not immediately en route to fulfill that request, a driver
shall only be considered engaged on a network company's platform when the app-based driver is
en route to fulfill that scheduled request, regardless of when the app-based driver accepted the
request. 7 of 21
(b) Engaged time shall not include (1) any time spent performing delivery or
transportation services after the request has been cancelled by the customer; or (2) any time spent
on a request for delivery or transportation services where the app-based driver abandons
performance of the service prior to completion. 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.
"Health Connector", the Commonwealth Health Insurance Connector Authority
established by chapter 58 of the acts of 2006 and section 2 of chapter 176Q of the Massachusetts
General Laws.
"Minimum wage", the state mandated minimum wage for all industries as provided by
section 1 of chapter 151 of the Massachusetts General Laws.
"Net earnings", all earnings received by an app-based driver in an earnings period.
"Net earnings floor", means the amount determined under subsection (c) of Section 5 of
this chapter, against which an app-based driver's net earnings are compared.
"Network company", a business entity operating as:
(a) a delivery network company;
(b) a transportation network company; or
(c) both.
"Person", shall have the same definition as provided in clause twenty-third of section 7 of
chapter 4 of the Massachusetts General Laws. 8 of 21
"Private passenger motor vehicle," any passenger vehicle which has a vehicle weight
rating or curb weight of 6,000 lbs. or less as per manufacturer's description of said vehicle or is a
sport utility vehicle, passenger van, or pickup truck.
"Qualifying health plan", a health insurance plan in which the app-based driver is the
subscriber, that is not paid for in full or in part by any current or former employer, and that is not
a Medicare or Medicaid plan.
"Quarter", each of the following 4 time periods: (a) January 1 through March 31; (b)
April 1 through June 30; (c) July 1 through September 30; (d) October 1 through December 31.
"Transportation network company" or "TNC", has the same meaning as provided in
section 1 of chapter 159A1/2 of the Massachusetts General Laws.
"Transportation network company driver" or "TNC driver", a Transportation network
driver, as defined in section 1 of chapter 159A1/2 of the Massachusetts General Laws, that
provides transportation services, or a person operating a livery vehicle as defined in 540 CMR
2.00 on a TNC's digital network, as defined in section 1 of chapter 159A1/2.
"Transportation services", the provision of transportation facilitated by the digital
network, as defined in section 1 of chapter 159A1/2 of the Massachusetts General Laws, of a
TNC for which the pickup of the passenger occurs in the Commonwealth.
Section 5: Guaranteed Earnings Floor.
(a) A network company shall ensure that for each earnings period, an app-based driver is
compensated at not less than the net earnings floor as set forth in this section. The net earnings
floor establishes a guaranteed minimum level of compensation for app-based drivers that cannot 9 of 21
be reduced. In no way does the net earnings floor prohibit app-based drivers from earning a
higher level of compensation.
(b) For each earnings period, a network company shall compare an app-based driver's net
earnings against the net earnings floor for that app-based driver during the earnings period. In the
event that the app-based driver's net earnings in the earnings period are less than the net earnings
floor for that earnings period, the network company shall include an additional sum accounting
for the difference in the app-based driver's earnings no later than during the next earnings period.
(c) For all earnings periods, the net earnings floor shall be the sum of:
(i) The product of 120 per cent of the minimum wage and the number of hours of
engaged time during that earnings period.
(ii) (A) The product of the per-mile compensation for vehicle expenses set forth in this
clause and the total number of engaged miles traveled during that earnings period.
(B) After the effective date of this chapter and for the 2025 calendar year, the per-mile
compensation for vehicle expenses shall be 28 cents per engaged mile. For calendar years after
2025, the amount per engaged mile shall be adjusted pursuant to the following subsection (d).
(d) For calendar years following 2025, the executive office of labor and workforce
development shall adjust the per-mile compensation amount under subsection (c) annually to
reflect the percentage increase, if any, in the state minimum wage that is set to take effect that
calendar year. The executive office of labor and workforce development shall calculate and
publish the adjustments required by this subsection no later than November 30 of the year prior
to the increase taking effect. The adjusted compensation rates shall take effect on the later of 10 of 21
January 1 or the sixty-first day following publication. If the executive office of labor and
workforce development does not publish an increase as required by this subsection, no increase
in the compensation amounts shall occur.
(e) Nothing in this section shall be interpreted to require a network company to provide a
particular amount of compensation to an app-based driver for any given transportation or
delivery request, as long as the app-based driver's net earnings for each earnings period equals or
exceeds that app-based driver's net earnings floor for that earnings period as set forth in
subsection (b) of this section.
Section 6. Healthcare Stipend.
(a) Consistent with the average contributions required under the federal Patient Protection
and Affordable Care Act, Pub. L. 111-148 (March 23, 2010), a network company shall provide a
quarterly healthcare stipend to app-based drivers who meet the conditions set forth in this
section. An app-based driver that averages the following amounts of engaged time per week on a
network company's platform during a quarter that commences on or after January 1, 2025 shall
receive the following stipends from that network company:
(l) For an average of 25 hours or more per week of engaged time in the quarter, a
payment greater than or equal to 100 per cent of the average ACA contribution for the applicable
average monthly Health Connector premium for each month in the quarter.
(2) For an average of at least 15 but less than 25 hours per week of engaged time in the
quarter, a payment greater than or equal to 50 per cent of the average ACA contribution for the
applicable average monthly Health Connector premium for each month in the quarter. 11 of 21
(b) At the end of each earnings period, a network company shall provide to each app-
based driver the following information:
(1) The total number of hours of engaged time the app-based driver recorded in the
network company's online-enabled application or platform during that earnings period.
(2) The number of hours of engaged time the app-based driver has recorded in the
network company's online-enabled application or platform during the current quarter up to that
point.
(c) The Health Connector may adopt or amend regulations as it deems appropriate to
implement this section, including to permit app-based drivers receiving stipends pursuant to this
section to enroll in health plans offered through the Health Connector.
(d)(1) As a condition of providing the healthcare stipend set forth in subsection (a), a
network company may require an app-based driver to submit proof of current enrollment in a
qualifying health plan as of the last day of the quarter for which the stipend would be provided.
Proof of current enrollment may include, but is not limited to, health insurance membership or
identification cards, evidence of coverage and disclosure forms from the health plan, or claim
forms and other documents necessary to submit claims.
(2) An app-based driver shall have not less than 15 calendar days from the end of the
quarter to provide proof of enrollment as set forth in paragraph (1) of this subsection.
(3) A network company shall provide a healthcare stipend due for a quarter under
subsection (a) within 15 days of the end of the quarter or within 15 days of the app-based driver's 12 of 21
submission of proof of enrollment as set forth in paragraph (1) of this subsection, whichever is
later.
(e) Nothing in this section shall be interpreted to prevent an app-based driver from
receiving a healthcare stipend from more than one network company for the same quarter.
(f)(1) On or before 14 days following the effective date of this section, and on or before
each September 1 thereafter, the Health Connector shall publish the average statewide monthly
premium paid, or anticipated to be paid, by an individual for the following calendar year for a
Health Connector bronze tier health insurance plan, or any future successor equivalent plan.
(2) When computing the average as required by paragraph (1) of this subsection, the
Health Connector shall divide the total monthly premium paid, or anticipated to be paid, by all
enrollee in an individual Health Connector bronze tier health insurance plan, or any future
successor equivalent plan, by the total number of individuals in the commonwealth who are
enrolled in, or anticipated to be enrolled in, such plans.
(g) This section shall become inoperative in the event that the United States or the
commonwealth implements a single-payer universal healthcare system or substantially similar
system that expands coverage to the recipients of stipends under this section.
Section 7. Paid Sick Time. Network companies shall provide app-based drivers with
earned paid sick time as set forth in this section.
(a) "Earned paid sick time", is the time provided by a network company to an app-based
driver as calculated under subsection (c) of this section. For each hour of earned paid sick time 13 of 21
used by an app-based driver, the network company shall compensate the app-based driver at a
rate equal to the greater of the following:
(1) The app-based driver's average hourly earnings, as defined in section 4 of this
chapter; or
(2) 120 per cent of the minimum wage.
(b) An app-based driver shall only use earned paid sick time for the same reasons set
forth for employees in paragraph (1) through paragraph (4) of subsection (c) of section 148C of
chapter 149 of the Massachusetts General Laws.
(c) A network company shall provide a minimum of one hour of earned paid sick time for
every 30 hours of engaged time recorded on or after the effective date of this section by an app-
based driver in the network company's online-enabled application or platform. App-based drivers
shall be entitled to first use accrued earned paid sick time upon recording 90 hours of engaged
time on the network company's online-enabled application or platform. From that day forward,
an app-based driver may use earned sick time as it accrues. A contract between a network
company and an app-based driver may require the app-based driver to use earned paid sick time
in increments of up to 4 hours.
(d) App-based drivers may carry over up to 40 hours of unused earned paid sick time to
the next calendar year, but are not entitled to use more than 40 hours in one calendar year.
Network companies shall not be required to pay out unused earned paid sick time. If an app-
based driver does not record any engaged time in a network company's online-enabled
application or platform for 365 or more consecutive days or the app-based driver's contract with 14 of 21
a network company is terminated, any unused earned paid sick time accrued up to that point with
that network company shall no longer be valid or recognized.
(e) A network company may require certification when an app-based driver makes a
request to use more than 24 hours of earned paid sick time in a 72-hour period or when
reasonably necessary to prevent fraud. Any reasonable documentation signed by a health care
provider indicating the need for earned paid sick time taken shall be deemed acceptable
certification for absences. Nothing in this section shall be construed to require an app-based
driver to provide as certification any information from a health care provider that would be in
violation of federal law.
Section 8. Occupational Accident Insurance.
(a) For the purposes of this section, the following words shall have the following
meanings:-
(1) "Average weekly earnings", the app-based driver's total earnings from all network
companies during the 28 days prior to the accident divided by four.
(2) "Online", the time when an app-based driver is utilizing a network company's online-
enabled application or platform and can receive requests for transportation services or delivery
services from the network company or during engaged time.
(3) "Maximum weekly compensation rate", has the same meaning as provided in section
1 of chapter 152 of the Massachusetts General Laws.
(4) "Minimum weekly compensation rate", has the same meaning as provided in section 1
of chapter 152 of the Massachusetts General Laws. 15 of 21
(b) Each network company, within 240 days of the effective date of this chapter, shall
purchase occupational accident insurance, as described in this section, for all app-based drivers
who provide transportation or delivery services through the network company's online-enabled
application or platform.
(c) Each network company shall file with the division of insurance, no later than 30 days
after the commencement of a new policy year, a copy of the policy it has purchased for DNC
couriers and TNC drivers, respectively, The division of insurance shall be treated by the insurer
as a certificate holder for purposes of receiving notice of cancellation of the policy.
(d) The occupational accident insurance policy required under subsection (b) shall cover
medical expenses and lost income resulting from injuries suffered while the app-based driver is
online with a network company's online-enabled application or platform. Policies shall at a
minimum include a total combined single limit of $1,000,000 per accident and provide for
payment of benefits to a covered individual as follows:
(1) Coverage for medical expenses incurred, up to at least $1,000,000 and for up to 156
weeks following the injury;
(2) Continuous total disability payments, temporary total disability payments, and partial
disability payments for injuries that occur while the app-based driver is online equal to 66 per
cent of the app-based driver's average weekly earnings as of the date of injury but not more than
the maximum weekly compensation rate, unless the average weekly earnings of the app-based
driver is less than the minimum weekly compensation rate, in which case the weekly
compensation shall be equal to the app-based driver's average weekly earnings. Payments under
this paragraph shall be made for up to the first 156 weeks following the injury; 16 of 21
(3) For the benefit of spouses, children, or other dependents of app-based drivers,
accidental death insurance in the amount equal to 66 per cent of the app-based driver's average
weekly earnings as of the date of injury but not more than the maximum weekly compensation
rate, unless the average weekly earnings of the app-based driver is less than the minimum weekly
compensation rate, in which case the weekly compensation shall be equal to the app-based
driver's average weekly earnings, times 156 weeks for injuries suffered by an app-based driver
while the app-based driver is online with the network company's online-enabled application or
platform that result in death; and
(4) When injuries suffered by an app-based driver while the app-based driver is online
result in death, an amount to pay for reasonable burial expenses not to exceed eight times the
maximum weekly compensation rate.
(e) Occupational accident insurance under subsection (d) of this section shall not be
required to cover an accident that occurs while online but outside of engaged time where the
injured app-based driver is in engaged time on one or more other network company platforms or
where the app-based driver is engaged in personal activities. If an accident is covered by
occupational accident insurance maintained by more than one network company, the insurer of
the network company against whom a claim is filed is entitled to contribution for the pro-rata
share of coverage attributable to one or more other network companies up to the coverages and
limits in subsection (d).
(f) Any benefits provided to an app-based driver under this section shall be considered
amounts payable under an app-based driver's compensation law or disability benefit for the
purpose of determining amounts payable under any insurance provided under section 113L of 17 of 21
chapter 175 of the Massachusetts General Laws or for personal injury protection, as defined in
section 34A of chapter 90 of the Massachusetts General Laws.
Section 9. Implementation.
Chapter 159AA of the Massachusetts General Laws shall take effect on the later of
January 1, 2025, or as provided in Article 48 of the Amendments to the Massachusetts
Constitution, as amended. 18 of 21
FIRST TEN SIGNERS
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
CERTIFICATE OF THE ATTORNEY GENERAL.
September 6, 2023.
Honorable William Francis Galvin
Secretary of the Commonwealth
One Ashburton Place, Room 1705
Boston, Massachusetts 02108
RE: Initiative Petition No. 23-30 : Initiative Petition for A Law Defining
and Regulating the Relationship between Network Companies and
App-Based Drivers for Certain Purposes of the General Laws – Version
G
Dear Secretary Galvin:
In accordance with the provisions of Article 48 of the Amendments to
the Massachusetts Constitution, I have reviewed the above-referenced initiative
petition, which was submitted to me on or before the first Wednesday of August
of this year.
I hereby certify that this measure is in proper form for submission to
the people; that the measure is not, either affirmatively or negatively,
substantially the same as any measure which has been qualified for submission
or submitted to the people at either of the two preceding biennial state elections;
and that it contains only subjects that are related or are mutually dependent and
which are not excluded from the initiative process pursuant to Article 48, the
Initiative, Part 2, Section 2.
In accordance with Article 48, I enclose a fair, concise summary of the
measure.
Sincerely,
ANDREA JOY CAMPBELL,
Attorney General.
Enclosure. 20 of 21
SUMMARY OF 23-30.
This proposed law would specify that rideshare and delivery drivers
who accept requests through an online-enabled application are not
“employees of certain Massachusetts labor and employment laws, including
laws regarding workplace conditions, minimum wages, unemployment
insurance, and workers’ compensation. This proposed law would also
specify that rideshare and delivery companies are not “employers” for
purposes of those laws. This proposed law would also specify alternative
minimum compensation and benefits for rideshare and delivery drivers.
The proposed law would apply to drivers for rideshare and delivery
companies who use digital applications and who are (1) not required to work
specific days or hours; (2) not required to accept specific requests; (3) not
restricted from working with multiple rideshare or delivery companies; and
(4) not restricted from working in any other lawful occupation or business.
The proposed law would require rideshare and delivery companies to
provide drivers with a guaranteed amount of minimum compensation, equal
to 120 percent of the Massachusetts minimum wage, for time spent
completing requests for transportation or delivery, plus a per-mile amount
for each mile driven in a privately-owned vehicle while completing a
request. The per-mile amount would start at 28 cents and be adjusted yearly
to increase by any percentage increase made to the Massachusetts minimum
wage. The minimum compensation calculation would exclude time spent by
a driver between completing one request and accepting another request. A
driver whose earnings, not including tips and gratuities, fall below the
minimum compensation amount would be paid the difference to be brought
up to the minimum compensation amount.
The proposed law would require rideshare and delivery companies to
provide some drivers with a healthcare stipend. Drivers who average 25
hours or more per week completing requests for transportation or delivery
services with a company would receive a full stipend for an average
individual plan offered through the Health Connector, and drivers who
average between 15 and 25 hours per week completing requests for 21 of 21
transportation or delivery services with a company would receive a 50
percent stipend.
The proposed law would require rideshare and delivery companies to
provide drivers with a minimum of one hour of paid sick time for every 30
hours spent completing requests for transportation or delivery services with
that company.
The proposed law would require rideshare and delivery companies to
purchase accident insurance to provide some disability and medical benefits
for drivers who are injured or killed while online with the company’s
application or platform.
The proposed law would prohibit rideshare and delivery companies
from terminating the contract of a driver, or refusing to contract with a
driver, based on race, sex, sexual orientation, or other protected
characteristics unless based upon a bona fide occupational qualification or a
safety need. Companies would be required to provide a driver who is
terminated with an opportunity to appeal the termination with the network
company.
The proposed law would take effect on January 1, 2025.