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Massachusetts House Bill H4258

Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4258 Compare Versions

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22 HOUSE . . . . . . . . . . . . . . . No. 4258
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 of
1414 Article XLVIII of the Amendments to the Constitution an “Initiative Petition for
1515 a Law Defining and Regulating the Relationship Between Network Companies
1616 and App-Based Drivers for Certain Purposes of the General Laws,” signed by
1717 ten qualified voters and filed with this department on or before December 6,
1818 2023, together with additional signatures of qualified voters in the number of
1919 90,937, being a sufficient number to comply with the Provisions of said Article.
2020 Sincerely,
2121 WILLIAM FRANCIS GALVIN
2222 Secretary of the Commonwealth.
2323 AN INITIATIVE PETITION.
2424 Pursuant to Article XLVIII of the Amendments to the Constitution of the
2525 Commonwealth, as amended, the undersigned qualified voters of the
2626 Commonwealth, ten in number at least, hereby petition for the enactment into
2727 law of the following measure: 2 of 21
2828 FILED ON: 1/25/2024
2929 HOUSE . . . . . . . . . . . . . . . No. 4258
3030 The Commonwealth of Massachusetts
3131 _______________
3232 In the One Hundred and Ninety-Third General Court
3333 (2023-2024)
3434 _______________
3535 An Act defining and regulating the relationship between network companies and app-based
3636 drivers for certain purposes of the General Laws.
3737 Be it enacted by the People, and by their authority, as follows:
3838 SECTION 1. The General Laws are hereby amended by inserting after chapter 159A1/2
3939 the following chapter:
4040 Chapter 159AA
4141 Section 1. Title. This chapter shall be known as the "Relationship Between Network
4242 Companies and App-Based Drivers Act."
4343 Section 2. Purpose. The purpose of this chapter is to define and regulate the relationship
4444 between network companies and app-based drivers. The chapter requires network companies to
4545 provide app-based drivers with minimum compensation, healthcare stipends, earned paid sick
4646 time, and occupational accident insurance that will operate uniformly throughout the
4747 commonwealth, while protecting app-based drivers' freedom and flexibility to choose when, how
4848 long, how often, and for whom they work.
4949 Section 3. App-Based Driver Classification and Contractual Requirements. 3 of 21
5050 (a) Notwithstanding any general or special law, or any rule or regulation promulgated
5151 thereunder, for purposes of chapters 149, 151, 151A or 152, an app-based driver, as defined in
5252 section 4 of this chapter, is not an employee with respect to his or her relationship with a network
5353 company and a network company is not an employer with respect to its relationship with an app-
5454 based driver.
5555 (b) The requirements in this section and sections 5 through 8 of this chapter are
5656 incorporated into every contract made, modified, or renewed on or after the effective date of this
5757 chapter between an app-based driver and a network company with regard to delivery services or
5858 transportation services. Such contracts may contain supplemental terms that are in addition to
5959 those required by this chapter.
6060 (c) A network company shall not terminate a contract with an app-based driver, except on
6161 grounds specified in the contract or as is required by law.
6262 (d) A contract between a network company and an app-based driver shall provide app-
6363 based drivers whose contracts are terminated by the network company the opportunity to appeal
6464 such termination with the network company.
6565 (e) A network company shall not, unless based upon a bona fide occupational
6666 qualification or public or app-based driver safety need, refuse to contract with or terminate the
6767 contract of an app-based driver based upon race, color, age, religious creed, national origin, sex,
6868 gender identity, genetic information, ancestry, active military personnel, status as a veteran,
6969 pregnancy or a condition related to said pregnancy including, but not limited to, lactation or the
7070 need to express breast milk for a nursing child, or the handicap of a qualified handicapped person 4 of 21
7171 or sexual orientation, which shall not include persons whose sexual orientation involves minor
7272 children as the sex object.
7373 (f) Nothing in this chapter applies to any contract in existence before the effective date of
7474 this chapter.
7575 Section 4. Definitions. For the purposes of this chapter, the following words shall have
7676 the following meanings:
7777 "App-based driver", a person who is a DNC courier, a TNC driver, or both, who has a
7878 contract with a network company, and for whom the following requirements are met:
7979 (a) the network company does not unilaterally prescribe specific dates, times of day, or a
8080 minimum number of hours during which the app-based driver must be logged into the network
8181 company's online-enabled application or platform;
8282 (b) the network company may not terminate the contract of the app-based driver for not
8383 accepting a specific transportation service or delivery service request except where refusal
8484 constitutes a violation of governing federal, state, or local laws or regulations;
8585 (c) the network company does not restrict the app-based driver from performing services
8686 through other network companies except while performing services through the network
8787 company's online-enabled application or platform; and
8888 (d) the network company does not contractually restrict the app-based driver from
8989 working in any other lawful occupation or business.
9090 "Average ACA contribution", 82 per cent of the dollar amount of the average monthly
9191 Health Connector premium. 5 of 21
9292 "Average hourly earnings", an app-based driver's earnings during the 365 days
9393 immediately prior to the day that earned paid sick time is used, divided by the total hours of
9494 engaged time worked by the app-based driver on that network company's online-enabled
9595 application or platform during that period.
9696 "Average monthly Health Connector premium", the dollar amount published pursuant to
9797 subsection (f) of section 6 of this chapter.
9898 "Contract", a written agreement, which may be electronic, between an app-based driver
9999 and a network company.
100100 "Delivery Network Company" or "DNC", a business entity that (a) maintains an online-
101101 enabled application or platform used to facilitate delivery services within the Commonwealth
102102 and (b) maintains a record of the amount of engaged time and engaged miles accumulated by
103103 DNC couriers.
104104 "Delivery Network Company Courier" or "DNC courier", a person who provides delivery
105105 services through a DNC's online-enabled application or platform.
106106 "Delivery services", the fulfillment of a delivery request, meaning the pickup from any
107107 location in the Commonwealth of any item or items and the delivery of the items using a private
108108 passenger motor vehicle, bicycle, electric bicycle, motorized bicycle, scooter, motorized scooter,
109109 walking, public transportation, or other similar means of transportation, to a location selected by
110110 the customer located within 50 miles of the pickup location. A delivery request may include
111111 more than 1, but not more than 30, distinct orders placed by different customers. Delivery
112112 services may include the selection, collection, or purchase of items by a DNC courier, as well as 6 of 21
113113 other tasks incident to a delivery. Delivery services do not include assistance with residential
114114 moving services.
115115 "Earnings", all amounts, including incentives and bonuses, remitted to an app-based
116116 driver by a network company, provided that the amount does not include toll fees, cleaning fees,
117117 airport fees, or other customer pass-throughs. Amounts remitted are net of service fees or similar
118118 fees charged to the app-based driver by the network company. Amounts remitted do not include
119119 tips or gratuities.
120120 "Earnings period", a recurring period of time, set by the network company, not to exceed
121121 14 consecutive calendar days.
122122 "Engaged miles", all miles traveled during engaged time in a private passenger motor
123123 vehicle that is not owned, leased, or rented by the network company, or any of its affiliates.
124124 Network companies may exclude miles if doing so is reasonably necessary to remedy or prevent
125125 fraudulent use of the network company's online-enabled application or platform.
126126 "Engaged time", (a) subject to the conditions set forth in subsection (b) in this definition,
127127 the period of time, as recorded in a network company's online-enabled application or platform,
128128 from when a app-based driver accepts a request for delivery or transportation services to when
129129 the driver fulfills that request. For requests that are scheduled in advance and for which the app-
130130 based driver accepts the request but is not immediately en route to fulfill that request, a driver
131131 shall only be considered engaged on a network company's platform when the app-based driver is
132132 en route to fulfill that scheduled request, regardless of when the app-based driver accepted the
133133 request. 7 of 21
134134 (b) Engaged time shall not include (1) any time spent performing delivery or
135135 transportation services after the request has been cancelled by the customer; or (2) any time spent
136136 on a request for delivery or transportation services where the app-based driver abandons
137137 performance of the service prior to completion. Network companies may also exclude time if
138138 doing so is reasonably necessary to remedy or prevent fraudulent use of the network company's
139139 online-enabled application or platform.
140140 "Health Connector", the Commonwealth Health Insurance Connector Authority
141141 established by chapter 58 of the acts of 2006 and section 2 of chapter 176Q of the Massachusetts
142142 General Laws.
143143 "Minimum wage", the state mandated minimum wage for all industries as provided by
144144 section 1 of chapter 151 of the Massachusetts General Laws.
145145 "Net earnings", all earnings received by an app-based driver in an earnings period.
146146 "Net earnings floor", means the amount determined under subsection (c) of Section 5 of
147147 this chapter, against which an app-based driver's net earnings are compared.
148148 "Network company", a business entity operating as:
149149 (a) a delivery network company;
150150 (b) a transportation network company; or
151151 (c) both.
152152 "Person", shall have the same definition as provided in clause twenty-third of section 7 of
153153 chapter 4 of the Massachusetts General Laws. 8 of 21
154154 "Private passenger motor vehicle," any passenger vehicle which has a vehicle weight
155155 rating or curb weight of 6,000 lbs. or less as per manufacturer's description of said vehicle or is a
156156 sport utility vehicle, passenger van, or pickup truck.
157157 "Qualifying health plan", a health insurance plan in which the app-based driver is the
158158 subscriber, that is not paid for in full or in part by any current or former employer, and that is not
159159 a Medicare or Medicaid plan.
160160 "Quarter", each of the following 4 time periods: (a) January 1 through March 31; (b)
161161 April 1 through June 30; (c) July 1 through September 30; (d) October 1 through December 31.
162162 "Transportation network company" or "TNC", has the same meaning as provided in
163163 section 1 of chapter 159A1/2 of the Massachusetts General Laws.
164164 "Transportation network company driver" or "TNC driver", a Transportation network
165165 driver, as defined in section 1 of chapter 159A1/2 of the Massachusetts General Laws, that
166166 provides transportation services, or a person operating a livery vehicle as defined in 540 CMR
167167 2.00 on a TNC's digital network, as defined in section 1 of chapter 159A1/2.
168168 "Transportation services", the provision of transportation facilitated by the digital
169169 network, as defined in section 1 of chapter 159A1/2 of the Massachusetts General Laws, of a
170170 TNC for which the pickup of the passenger occurs in the Commonwealth.
171171 Section 5: Guaranteed Earnings Floor.
172172 (a) A network company shall ensure that for each earnings period, an app-based driver is
173173 compensated at not less than the net earnings floor as set forth in this section. The net earnings
174174 floor establishes a guaranteed minimum level of compensation for app-based drivers that cannot 9 of 21
175175 be reduced. In no way does the net earnings floor prohibit app-based drivers from earning a
176176 higher level of compensation.
177177 (b) For each earnings period, a network company shall compare an app-based driver's net
178178 earnings against the net earnings floor for that app-based driver during the earnings period. In the
179179 event that the app-based driver's net earnings in the earnings period are less than the net earnings
180180 floor for that earnings period, the network company shall include an additional sum accounting
181181 for the difference in the app-based driver's earnings no later than during the next earnings period.
182182 (c) For all earnings periods, the net earnings floor shall be the sum of:
183183 (i) The product of 120 per cent of the minimum wage and the number of hours of
184184 engaged time during that earnings period.
185185 (ii) (A) The product of the per-mile compensation for vehicle expenses set forth in this
186186 clause and the total number of engaged miles traveled during that earnings period.
187187 (B) After the effective date of this chapter and for the 2025 calendar year, the per-mile
188188 compensation for vehicle expenses shall be 28 cents per engaged mile. For calendar years after
189189 2025, the amount per engaged mile shall be adjusted pursuant to the following subsection (d).
190190 (d) For calendar years following 2025, the executive office of labor and workforce
191191 development shall adjust the per-mile compensation amount under subsection (c) annually to
192192 reflect the percentage increase, if any, in the state minimum wage that is set to take effect that
193193 calendar year. The executive office of labor and workforce development shall calculate and
194194 publish the adjustments required by this subsection no later than November 30 of the year prior
195195 to the increase taking effect. The adjusted compensation rates shall take effect on the later of 10 of 21
196196 January 1 or the sixty-first day following publication. If the executive office of labor and
197197 workforce development does not publish an increase as required by this subsection, no increase
198198 in the compensation amounts shall occur.
199199 (e) Nothing in this section shall be interpreted to require a network company to provide a
200200 particular amount of compensation to an app-based driver for any given transportation or
201201 delivery request, as long as the app-based driver's net earnings for each earnings period equals or
202202 exceeds that app-based driver's net earnings floor for that earnings period as set forth in
203203 subsection (b) of this section.
204204 Section 6. Healthcare Stipend.
205205 (a) Consistent with the average contributions required under the federal Patient Protection
206206 and Affordable Care Act, Pub. L. 111-148 (March 23, 2010), a network company shall provide a
207207 quarterly healthcare stipend to app-based drivers who meet the conditions set forth in this
208208 section. An app-based driver that averages the following amounts of engaged time per week on a
209209 network company's platform during a quarter that commences on or after January 1, 2025 shall
210210 receive the following stipends from that network company:
211211 (l) For an average of 25 hours or more per week of engaged time in the quarter, a
212212 payment greater than or equal to 100 per cent of the average ACA contribution for the applicable
213213 average monthly Health Connector premium for each month in the quarter.
214214 (2) For an average of at least 15 but less than 25 hours per week of engaged time in the
215215 quarter, a payment greater than or equal to 50 per cent of the average ACA contribution for the
216216 applicable average monthly Health Connector premium for each month in the quarter. 11 of 21
217217 (b) At the end of each earnings period, a network company shall provide to each app-
218218 based driver the following information:
219219 (1) The total number of hours of engaged time the app-based driver recorded in the
220220 network company's online-enabled application or platform during that earnings period.
221221 (2) The number of hours of engaged time the app-based driver has recorded in the
222222 network company's online-enabled application or platform during the current quarter up to that
223223 point.
224224 (c) The Health Connector may adopt or amend regulations as it deems appropriate to
225225 implement this section, including to permit app-based drivers receiving stipends pursuant to this
226226 section to enroll in health plans offered through the Health Connector.
227227 (d)(1) As a condition of providing the healthcare stipend set forth in subsection (a), a
228228 network company may require an app-based driver to submit proof of current enrollment in a
229229 qualifying health plan as of the last day of the quarter for which the stipend would be provided.
230230 Proof of current enrollment may include, but is not limited to, health insurance membership or
231231 identification cards, evidence of coverage and disclosure forms from the health plan, or claim
232232 forms and other documents necessary to submit claims.
233233 (2) An app-based driver shall have not less than 15 calendar days from the end of the
234234 quarter to provide proof of enrollment as set forth in paragraph (1) of this subsection.
235235 (3) A network company shall provide a healthcare stipend due for a quarter under
236236 subsection (a) within 15 days of the end of the quarter or within 15 days of the app-based driver's 12 of 21
237237 submission of proof of enrollment as set forth in paragraph (1) of this subsection, whichever is
238238 later.
239239 (e) Nothing in this section shall be interpreted to prevent an app-based driver from
240240 receiving a healthcare stipend from more than one network company for the same quarter.
241241 (f)(1) On or before 14 days following the effective date of this section, and on or before
242242 each September 1 thereafter, the Health Connector shall publish the average statewide monthly
243243 premium paid, or anticipated to be paid, by an individual for the following calendar year for a
244244 Health Connector bronze tier health insurance plan, or any future successor equivalent plan.
245245 (2) When computing the average as required by paragraph (1) of this subsection, the
246246 Health Connector shall divide the total monthly premium paid, or anticipated to be paid, by all
247247 enrollee in an individual Health Connector bronze tier health insurance plan, or any future
248248 successor equivalent plan, by the total number of individuals in the commonwealth who are
249249 enrolled in, or anticipated to be enrolled in, such plans.
250250 (g) This section shall become inoperative in the event that the United States or the
251251 commonwealth implements a single-payer universal healthcare system or substantially similar
252252 system that expands coverage to the recipients of stipends under this section.
253253 Section 7. Paid Sick Time. Network companies shall provide app-based drivers with
254254 earned paid sick time as set forth in this section.
255255 (a) "Earned paid sick time", is the time provided by a network company to an app-based
256256 driver as calculated under subsection (c) of this section. For each hour of earned paid sick time 13 of 21
257257 used by an app-based driver, the network company shall compensate the app-based driver at a
258258 rate equal to the greater of the following:
259259 (1) The app-based driver's average hourly earnings, as defined in section 4 of this
260260 chapter; or
261261 (2) 120 per cent of the minimum wage.
262262 (b) An app-based driver shall only use earned paid sick time for the same reasons set
263263 forth for employees in paragraph (1) through paragraph (4) of subsection (c) of section 148C of
264264 chapter 149 of the Massachusetts General Laws.
265265 (c) A network company shall provide a minimum of one hour of earned paid sick time for
266266 every 30 hours of engaged time recorded on or after the effective date of this section by an app-
267267 based driver in the network company's online-enabled application or platform. App-based drivers
268268 shall be entitled to first use accrued earned paid sick time upon recording 90 hours of engaged
269269 time on the network company's online-enabled application or platform. From that day forward,
270270 an app-based driver may use earned sick time as it accrues. A contract between a network
271271 company and an app-based driver may require the app-based driver to use earned paid sick time
272272 in increments of up to 4 hours.
273273 (d) App-based drivers may carry over up to 40 hours of unused earned paid sick time to
274274 the next calendar year, but are not entitled to use more than 40 hours in one calendar year.
275275 Network companies shall not be required to pay out unused earned paid sick time. If an app-
276276 based driver does not record any engaged time in a network company's online-enabled
277277 application or platform for 365 or more consecutive days or the app-based driver's contract with 14 of 21
278278 a network company is terminated, any unused earned paid sick time accrued up to that point with
279279 that network company shall no longer be valid or recognized.
280280 (e) A network company may require certification when an app-based driver makes a
281281 request to use more than 24 hours of earned paid sick time in a 72-hour period or when
282282 reasonably necessary to prevent fraud. Any reasonable documentation signed by a health care
283283 provider indicating the need for earned paid sick time taken shall be deemed acceptable
284284 certification for absences. Nothing in this section shall be construed to require an app-based
285285 driver to provide as certification any information from a health care provider that would be in
286286 violation of federal law.
287287 Section 8. Occupational Accident Insurance.
288288 (a) For the purposes of this section, the following words shall have the following
289289 meanings:-
290290 (1) "Average weekly earnings", the app-based driver's total earnings from all network
291291 companies during the 28 days prior to the accident divided by four.
292292 (2) "Online", the time when an app-based driver is utilizing a network company's online-
293293 enabled application or platform and can receive requests for transportation services or delivery
294294 services from the network company or during engaged time.
295295 (3) "Maximum weekly compensation rate", has the same meaning as provided in section
296296 1 of chapter 152 of the Massachusetts General Laws.
297297 (4) "Minimum weekly compensation rate", has the same meaning as provided in section 1
298298 of chapter 152 of the Massachusetts General Laws. 15 of 21
299299 (b) Each network company, within 240 days of the effective date of this chapter, shall
300300 purchase occupational accident insurance, as described in this section, for all app-based drivers
301301 who provide transportation or delivery services through the network company's online-enabled
302302 application or platform.
303303 (c) Each network company shall file with the division of insurance, no later than 30 days
304304 after the commencement of a new policy year, a copy of the policy it has purchased for DNC
305305 couriers and TNC drivers, respectively, The division of insurance shall be treated by the insurer
306306 as a certificate holder for purposes of receiving notice of cancellation of the policy.
307307 (d) The occupational accident insurance policy required under subsection (b) shall cover
308308 medical expenses and lost income resulting from injuries suffered while the app-based driver is
309309 online with a network company's online-enabled application or platform. Policies shall at a
310310 minimum include a total combined single limit of $1,000,000 per accident and provide for
311311 payment of benefits to a covered individual as follows:
312312 (1) Coverage for medical expenses incurred, up to at least $1,000,000 and for up to 156
313313 weeks following the injury;
314314 (2) Continuous total disability payments, temporary total disability payments, and partial
315315 disability payments for injuries that occur while the app-based driver is online equal to 66 per
316316 cent of the app-based driver's average weekly earnings as of the date of injury but not more than
317317 the maximum weekly compensation rate, unless the average weekly earnings of the app-based
318318 driver is less than the minimum weekly compensation rate, in which case the weekly
319319 compensation shall be equal to the app-based driver's average weekly earnings. Payments under
320320 this paragraph shall be made for up to the first 156 weeks following the injury; 16 of 21
321321 (3) For the benefit of spouses, children, or other dependents of app-based drivers,
322322 accidental death insurance in the amount equal to 66 per cent of the app-based driver's average
323323 weekly earnings as of the date of injury but not more than the maximum weekly compensation
324324 rate, unless the average weekly earnings of the app-based driver is less than the minimum weekly
325325 compensation rate, in which case the weekly compensation shall be equal to the app-based
326326 driver's average weekly earnings, times 156 weeks for injuries suffered by an app-based driver
327327 while the app-based driver is online with the network company's online-enabled application or
328328 platform that result in death; and
329329 (4) When injuries suffered by an app-based driver while the app-based driver is online
330330 result in death, an amount to pay for reasonable burial expenses not to exceed eight times the
331331 maximum weekly compensation rate.
332332 (e) Occupational accident insurance under subsection (d) of this section shall not be
333333 required to cover an accident that occurs while online but outside of engaged time where the
334334 injured app-based driver is in engaged time on one or more other network company platforms or
335335 where the app-based driver is engaged in personal activities. If an accident is covered by
336336 occupational accident insurance maintained by more than one network company, the insurer of
337337 the network company against whom a claim is filed is entitled to contribution for the pro-rata
338338 share of coverage attributable to one or more other network companies up to the coverages and
339339 limits in subsection (d).
340340 (f) Any benefits provided to an app-based driver under this section shall be considered
341341 amounts payable under an app-based driver's compensation law or disability benefit for the
342342 purpose of determining amounts payable under any insurance provided under section 113L of 17 of 21
343343 chapter 175 of the Massachusetts General Laws or for personal injury protection, as defined in
344344 section 34A of chapter 90 of the Massachusetts General Laws.
345345 Section 9. Implementation.
346346 Chapter 159AA of the Massachusetts General Laws shall take effect on the later of
347347 January 1, 2025, or as provided in Article 48 of the Amendments to the Massachusetts
348348 Constitution, as amended. 18 of 21
349349 FIRST TEN SIGNERS
350350 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
351351 CERTIFICATE OF THE ATTORNEY GENERAL.
352352 September 6, 2023.
353353 Honorable William Francis Galvin
354354 Secretary of the Commonwealth
355355 One Ashburton Place, Room 1705
356356 Boston, Massachusetts 02108
357357 RE: Initiative Petition No. 23-30 : Initiative Petition for A Law Defining
358358 and Regulating the Relationship between Network Companies and
359359 App-Based Drivers for Certain Purposes of the General Laws – Version
360360 G
361361 Dear Secretary Galvin:
362362 In accordance with the provisions of Article 48 of the Amendments to
363363 the Massachusetts Constitution, I have reviewed the above-referenced initiative
364364 petition, which was submitted to me on or before the first Wednesday of August
365365 of this year.
366366 I hereby certify that this measure is in proper form for submission to
367367 the people; that the measure is not, either affirmatively or negatively,
368368 substantially the same as any measure which has been qualified for submission
369369 or submitted to the people at either of the two preceding biennial state elections;
370370 and that it contains only subjects that are related or are mutually dependent and
371371 which are not excluded from the initiative process pursuant to Article 48, the
372372 Initiative, Part 2, Section 2.
373373 In accordance with Article 48, I enclose a fair, concise summary of the
374374 measure.
375375 Sincerely,
376376 ANDREA JOY CAMPBELL,
377377 Attorney General.
378378 Enclosure. 20 of 21
379379 SUMMARY OF 23-30.
380380 This proposed law would specify that rideshare and delivery drivers
381381 who accept requests through an online-enabled application are not
382382 “employees of certain Massachusetts labor and employment laws, including
383383 laws regarding workplace conditions, minimum wages, unemployment
384384 insurance, and workers’ compensation. This proposed law would also
385385 specify that rideshare and delivery companies are not “employers” for
386386 purposes of those laws. This proposed law would also specify alternative
387387 minimum compensation and benefits for rideshare and delivery drivers.
388388 The proposed law would apply to drivers for rideshare and delivery
389389 companies who use digital applications and who are (1) not required to work
390390 specific days or hours; (2) not required to accept specific requests; (3) not
391391 restricted from working with multiple rideshare or delivery companies; and
392392 (4) not restricted from working in any other lawful occupation or business.
393393 The proposed law would require rideshare and delivery companies to
394394 provide drivers with a guaranteed amount of minimum compensation, equal
395395 to 120 percent of the Massachusetts minimum wage, for time spent
396396 completing requests for transportation or delivery, plus a per-mile amount
397397 for each mile driven in a privately-owned vehicle while completing a
398398 request. The per-mile amount would start at 28 cents and be adjusted yearly
399399 to increase by any percentage increase made to the Massachusetts minimum
400400 wage. The minimum compensation calculation would exclude time spent by
401401 a driver between completing one request and accepting another request. A
402402 driver whose earnings, not including tips and gratuities, fall below the
403403 minimum compensation amount would be paid the difference to be brought
404404 up to the minimum compensation amount.
405405 The proposed law would require rideshare and delivery companies to
406406 provide some drivers with a healthcare stipend. Drivers who average 25
407407 hours or more per week completing requests for transportation or delivery
408408 services with a company would receive a full stipend for an average
409409 individual plan offered through the Health Connector, and drivers who
410410 average between 15 and 25 hours per week completing requests for 21 of 21
411411 transportation or delivery services with a company would receive a 50
412412 percent stipend.
413413 The proposed law would require rideshare and delivery companies to
414414 provide drivers with a minimum of one hour of paid sick time for every 30
415415 hours spent completing requests for transportation or delivery services with
416416 that company.
417417 The proposed law would require rideshare and delivery companies to
418418 purchase accident insurance to provide some disability and medical benefits
419419 for drivers who are injured or killed while online with the company’s
420420 application or platform.
421421 The proposed law would prohibit rideshare and delivery companies
422422 from terminating the contract of a driver, or refusing to contract with a
423423 driver, based on race, sex, sexual orientation, or other protected
424424 characteristics unless based upon a bona fide occupational qualification or a
425425 safety need. Companies would be required to provide a driver who is
426426 terminated with an opportunity to appeal the termination with the network
427427 company.
428428 The proposed law would take effect on January 1, 2025.