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Massachusetts House Bill H4259

Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4259 Compare Versions

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22 HOUSE . . . . . . . . . . . . . . . No. 4259
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 10, 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 Article
1414 XLVIII of the Amendments to the Constitution an “Initiative Petition for a Law
1515 Establishing that App-Based Drivers are not Employees, and Network Companies
1616 are not Employers, for Certain Purposes of the General Laws,” signed by ten
1717 qualified voters and filed with this department on or before December 6, 2023,
1818 together with additional signatures of qualified voters in the number of 92,555,
1919 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 law
2727 of the following measure: 2 of 21
2828 FILED ON: 1/25/2024
2929 HOUSE . . . . . . . . . . . . . . . No. 4259
3030 The Commonwealth of Massachusetts
3131 _______________
3232 In the One Hundred and Ninety-Third General Court
3333 (2023-2024)
3434 _______________
3535 An Act establishing that app-based drivers are not employees, and network companies are not
3636 employers, for certain purposes of the General Laws.
3737 Be it enacted by the People, and by their authority, as follows:
3838 1 SECTION 1. Section 148B of chapter 149 of the General Laws is hereby amended by
3939 2inserting after subsection (e) the following subsection:
4040 3 (f) Notwithstanding subsection (a), for the purpose of this chapter and chapter 151, an
4141 4app-based driver, as defined in chapter 159AA, shall not be an employee under those chapters.
4242 5 SECTION 2. Section 6 of chapter 151A of the General Laws is hereby amended by
4343 6inserting after subsection (x) the following subsection:
4444 7 (y) Service performed by an app-based driver, as defined in chapter 159AA.
4545 8 SECTION 3 Subsection (4) of section 1 of chapter 152 of the General Laws is hereby
4646 9amended by striking out the words "and (g)" and inserting in place thereof the following words:-
4747 10(g) a person who is an app-based driver, as defined in chapter 159AA, and (h)
4848 11 SECTION 4. The General Laws are hereby amended by inserting after chapter 159Al/2
4949 12the following chapter: 3 of 21
5050 13 Chapter 159AA
5151 14 Section 1. Title. This chapter shall be known as the "Relationship Between Network
5252 15Companies and App-Based Drivers Act."
5353 16 Section 2. Purpose. The purpose of this chapter is to define and regulate the relationship
5454 17between network companies and app-based drivers. The chapter requires network companies to
5555 18provide app-based drivers with minimum compensation, healthcare stipends, earned paid sick
5656 19time, and occupational accident insurance that will operate uniformly throughout the
5757 20commonwealth, while protecting app-based drivers' freedom and flexibility to choose when, how
5858 21long, how often, and for whom they work.
5959 22 Section 3. App-Based Driver Contractual Requirements. (a) The requirements in this
6060 23section and sections 5 through 8 of this chapter are incorporated into every contract made,
6161 24modified, or renewed on or after the effective date of this chapter between an app-based driver
6262 25and a network company with regard to delivery services or transportation services. Such
6363 26contracts may contain supplemental terms that are in addition to those required by this chapter.
6464 27 (b)A network company shall not terminate a contract with an app-based driver,
6565 28except on grounds specified in the contract or as is required by law.
6666 29 (c)A contract between a network company and an app-based driver shall provide
6767 30app-based drivers whose contracts are terminated by the network company the opportunity to
6868 31appeal such termination with the network company.
6969 32 (d)A network company shall not, unless based upon a bona fide occupational
7070 33qualification or public or app-based driver safety need, refuse to contract with or terminate the 4 of 21
7171 34contract of an app-based driver based upon race, color, age, religious creed, national origin, sex,
7272 35gender identity, genetic information, ancestry, active military personnel, status as a veteran,
7373 36pregnancy or a condition related to said pregnancy including, but not limited to, lactation or the
7474 37need to express breast milk for a nursing child, or the handicap of a qualified handicapped person
7575 38or sexual orientation, which shall not include persons whose sexual orientation involves minor
7676 39children as the sex object.
7777 40 (e)Nothing in this chapter applies to any contract in existence before the effective
7878 41date of this chapter.
7979 42 Section 4. Definitions. For the purposes of this chapter, the following words shall have
8080 43the following meanings:
8181 44 "App-based driver", a person who is a DNC courier, a TNC driver, or both, who has a
8282 45contract with a network company, and for whom the following requirements are met:
8383 46 (a)the network company does not unilaterally prescribe specific dates, times of day,
8484 47or a minimum number of hours during which the app-based driver must be logged into the
8585 48network company's online-enabled application or platform;
8686 49 (b)the network company may not terminate the contract of the app-based driver for
8787 50not accepting a specific transportation service or delivery service request except where refusal
8888 51constitutes a violation of governing federal, state, or local laws or regulations;
8989 52 (c)the network company does not restrict the app-based driver from performing
9090 53services through other network companies except while performing services through the network
9191 54company's online-enabled application or platform; and 5 of 21
9292 55 (d)the network company does not contractually restrict the app-based driver from
9393 56working in any other lawful occupation or business.
9494 57 "Average ACA contribution", 82 per cent of the dollar amount of the average monthly
9595 58Health Connector premium.
9696 59 "Average hourly earnings", an app-based driver's earnings during the 365 days
9797 60immediately prior to the day that earned paid sick time is used, divided by the total hours of
9898 61engaged time worked by the app-based driver on that network company's online-enabled
9999 62application or platform during that period.
100100 63 "Average monthly Health Connector premium", the dollar amount published pursuant to
101101 64subsection (f) of section 6 of this chapter.
102102 65 "Contract", a written agreement, which may be electronic, between an app-based driver
103103 66and a network company.
104104 67 "Delivery Network Company" or "DNC", a business entity that (a) maintains an online-
105105 68enabled application or platform used to facilitate delivery services within
106106 69 the Commonwealth and (b) maintains a record of the amount of engaged time and
107107 70engaged miles accumulated by DNC couriers.
108108 71 "Delivery Network Company Courier" or "DNC courier", a person who provides delivery
109109 72services through a DNC's online-enabled application or platform.
110110 73 "Delivery services", the fulfillment of a delivery request, meaning the pickup from any
111111 74location in the Commonwealth of any item or items and the delivery of the items using a private
112112 75passenger motor vehicle, bicycle, electric bicycle, motorized bicycle, scooter, motorized scooter, 6 of 21
113113 76walking, public transportation, or other similar means of transportation, to a location selected by
114114 77the customer located within 50 miles of the pickup location. A delivery request may include
115115 78more than I, but not more than 30, distinct orders placed by different customers. Delivery
116116 79services may include the selection, collection, or purchase of items by a DNC courier, as well as
117117 80other tasks incident to a delivery. Delivery services do hot include assistance with residential
118118 81moving services.
119119 82 "Earnings", all amounts, including incentives and bonuses, remitted to an app-based
120120 83driver by a network company, provided that the amount does not include toll fees, cleaning fees,
121121 84airport fees, or other customer pass-throughs. Amounts remitted are net of service fees or similar
122122 85fees charged to the app-based driver by the network company. Amounts remitted do not include
123123 86tips or gratuities.
124124 87 "Earnings period", a recurring period of time, set by the network company, not to exceed
125125 8814 consecutive calendar days.
126126 89 "Engaged miles", all miles traveled during engaged time in a private passenger motor
127127 90vehicle that is not owned, leased, or rented by the network company, or any of its affiliates.
128128 91Network companies may exclude miles if doing so is reasonably necessary to remedy or prevent
129129 92fraudulent use of the network company's online-enabled application or platform.
130130 93 "Engaged time", (a) subject to the conditions set forth in subsection (b) in this definition,
131131 94the period of time, as recorded in a network company's online-enabled application or platform,
132132 95from when a app-based driver accepts a request for delivery or transportation services to when
133133 96the driver fulfills that request. For requests that are scheduled in advance and for which the app-
134134 97based driver accepts the request but is not immediately en route to fulfill that request, a driver 7 of 21
135135 98shall only be considered engaged on a network company's platform when the app-based driver is
136136 99en route to fulfill that scheduled request, regardless of when the app-based driver accepted the
137137 100request.
138138 101 (b) Engaged time shall not include (1) any time spent performing delivery or
139139 102transportation services after the request has been cancelled by the customer; or (2) any time spent
140140 103on a request for delivery or transportation services where the app-based driver abandons
141141 104performance of the service prior to completion. Network companies may also exclude time if
142142 105doing so is reasonably necessary to remedy or prevent fraudulent use of the network company's
143143 106online-enabled application or platform.
144144 107 "Health Connector", the Commonwealth Health Insurance Connector Authority
145145 108established by chapter 58 of the acts of 2006 and section 2 of chapter 176Q of the Massachusetts
146146 109General Laws.
147147 110 "Minimum wage", the state mandated minimum wage for all industries as provided by
148148 111section 1 of chapter 151 of the Massachusetts General Laws.
149149 112 "Net earnings", all earnings received by an app-based driver in an earnings period.
150150 113 "Net earnings floor", means the amount determined under subsection (c) of Section 5 of
151151 114this chapter, against which an app-based driver's net earnings are compared.
152152 115 "Network company", a business entity operating as:
153153 116 (a)a delivery network company;
154154 117 (b)a transportation network company; or 8 of 21
155155 118 (c)both.
156156 119 "Person", shall have the same definition as provided in clause twenty-third of section 7
157157 120of chapter 4 of the Massachusetts General Laws.
158158 121 "Private passenger motor vehicle," any passenger vehicle which has a vehicle weight
159159 122rating or curb weight of 6,000 lbs. or less as per manufacturer's description of said vehicle or is a
160160 123sport utility vehicle, passenger van, or pickup truck.
161161 124 "Qualifying health plan", a health insurance plan in which the app-based driver is the
162162 125subscriber, that is not paid for in full or in part by any current or former employer, and that is not
163163 126a Medicare or Medicaid plan.
164164 127 "Quarter", each of the following 4 time periods: (a) January 1 through March 31; (b)
165165 128April 1 through June 30; (c) July I through September 30; (d) October 1 through December 31.
166166 129 "Transportation network company" or "TNC", has the same meaning as provided in
167167 130section I of chapter 159Al/2 of the Massachusetts General Laws.
168168 131 "Transportation network company driver" or "TNC driver", a Transportation network
169169 132driver, as defined in section I of chapter 159Al/2 of the Massachusetts General Laws, that
170170 133provides transportation services, or a person operating a livery vehicle as defined in 540 CMR
171171 1342.00 on a TNC's digital network, as defined in section 1 of chapter 159Al/2.
172172 135 "Transportation services", the provision of transportation facilitated by the digital
173173 136network, as defined in section 1 of chapter 159Al/2 of the Massachusetts General Laws, of a
174174 137TNC for which the pickup of the passenger occurs in the Commonwealth.
175175 138 Section 5: Guaranteed Earnings Floor. 9 of 21
176176 139 (a)A network company shall ensure that for each earnings period, an app-based
177177 140driver is compensated at not less than the net earnings floor as set forth in this section. The net
178178 141earnings floor establishes a guaranteed minimum level of compensation for app-based drivers
179179 142that cannot be reduced. In no way does the net earnings floor prohibit app-based drivers from
180180 143earning a higher level of compensation.
181181 144 (b)For each earnings period, a network company shall compare an app-based driver's
182182 145net earnings against the net earnings floor for that app-based driver during the earnings period. In
183183 146the event that the app-based driver's net earnings in the earnings period are less than the net
184184 147earnings floor for that earnings period, the network company shall include an additional sum
185185 148accounting for the difference in the app-based driver's earnings no later than during the next
186186 149earnings period.
187187 150 (c)For all earnings periods, the net earnings floor shall be the sum of:
188188 151 (i)The product of 120 per cent of the minimum wage and the number of hours of
189189 152engaged time during that earnings period.
190190 153 (ii)(A) The product of the per-mile compensation for vehicle expenses set forth in
191191 154this clause and the total number of engaged miles traveled during that earnings period.
192192 155 (B) After the effective date of this chapter and for the 2025 calendar year, the per-mile
193193 156compensation for vehicle expenses shall be 28 cents per engaged mile. For calendar years after
194194 1572025, the amount per engaged mile shall be adjusted pursuant to the following subsection (d).
195195 158 (d)For calendar years following 2025, the executive office of labor and workforce
196196 159development shall adjust the per-mile compensation amount under subsection (c) annually to 10 of 21
197197 160reflect the percentage increase, if any, in the state minimum wage that is set to take effect that
198198 161calendar year. The executive office of labor and workforce development shall calculate and
199199 162publish the adjustments required by this subsection no later than November 30 of the year prior
200200 163to the increase taking effect. The adjusted compensation rates shall take effect on the later of
201201 164January 1 or the sixty-first day following publication. If the executive office of labor and
202202 165workforce development does not publish an increase as required by this subsection, no increase
203203 166in the compensation amounts shall occur.
204204 167 (e)Nothing in this section shall be interpreted to require a network company to
205205 168provide a particular amount of compensation to an app-based driver for any given transportation
206206 169or delivery request, as long as the app-based driver's net earnings for each earnings period equals
207207 170or exceeds that app-based driver's net earnings floor for that earnings period as set forth in
208208 171subsection (b) of this section.
209209 172 Section 6. Healthcare Stipend.
210210 173 (a)Consistent with the average contributions required under the federal Patient
211211 174Protection and Affordable Care Act, Pub. L. 111-148 (March 23, 2010), a network company
212212 175shall provide a quarterly healthcare stipend to app-based drivers who meet the conditions set
213213 176forth in this section. An app-based driver that averages the following amounts of engaged time
214214 177per week on a network company's platform during a quarter that commences on or after January
215215 1781, 2025 shall receive the following stipends from that network company:
216216 179 (1)For an average of 25 hours or more per week of engaged time in the quarter, a
217217 180payment greater than or equal to 100 per cent of the average ACA contribution for the applicable
218218 181average monthly Health Connector premium for each month in the quarter. 11 of 21
219219 182 (2)For an average of at least 15 but less than 25 hours per week of engaged time in
220220 183the quarter, a payment greater than or equal to 50 per cent of the average ACA contribution for
221221 184the applicable average monthly Health Connector premium for each month in the quarter.
222222 185 (b)At the end of each earnings period, a network company shall provide to each app-
223223 186based driver the following information:
224224 187 (1)The total number of hours of engaged time the app-based driver recorded in the
225225 188network company's online-enabled application or platform during that earnings period.
226226 189 (2)The number of hours of engaged time the app-based driver has recorded in the
227227 190network company's online-enabled application or platform during the current quarter up.to that
228228 191point.
229229 192 (c)The Health Connector may adopt or amend regulations as it deems appropriate to
230230 193implement this section, including to permit app-based drivers receiving stipends pursuant to this
231231 194section to enroll in health plans offered through the Health Connector.
232232 195 (d)(l) As a condition of providing the healthcare stipend set forth in subsection (a), a
233233 196network company may require an app-based driver to submit proof of current enrollment in a
234234 197qualifying health plan as of the last day of the quarter for which the stipend would be provided.
235235 198Proof of current enrollment may include, but is not limited to, health insurance membership or
236236 199identification cards, evidence of coverage and disclosure forms from the health plan, or claim
237237 200forms and other documents necessary to submit claims.
238238 201 (2)An app-based driver shall have not less than 15 calendar days from the end of the
239239 202quarter to provide proof of enrollment as set forth in paragraph (I) of this subsection. 12 of 21
240240 203 (3)A network company shall provide a healthcare stipend due for a quarter under
241241 204subsection (a) within I 5 days of the end of the quarter or within 15 days of the app-based driver's
242242 205submission of proof of enrollment as set forth in paragraph (1) of this subsection, whichever is
243243 206later.
244244 207 (e)Nothing in this section shall be interpreted to prevent an app-based driver from
245245 208receiving a healthcare stipend from more than one network company for the same quarter.
246246 209 (f)(l) On or before 14 days following the effective date of this section, and on or before
247247 210each September 1 thereafter, the Health Connector shall publish the average statewide monthly
248248 211premium paid, or anticipated to be paid, by an individual for the following calendar year for a
249249 212Health Connector bronze tier health insurance plan, or any future successor equivalent plan.
250250 213 (2) When computing the average as required by paragraph (1) of this subsection, the
251251 214Health Connector shall divide the total monthly premium paid, or anticipated to be paid, by all
252252 215enrollees in an individual Health Connector bronze tier health insurance plan, or any future
253253 216successor equivalent plan, by the total number of individuals in the commonwealth who are
254254 217enrolled in, or anticipated to be enrolled in, such plans.
255255 218 (g) This section shall become inoperative in the event that the United States or the
256256 219commonwealth implements a single-payer universal healthcare system or substantially similar
257257 220system that expands coverage to the recipients of stipends under this section.
258258 221 Section 7. Paid Sick Time. Network companies shall provide app-based drivers with
259259 222earned paid sick time as set forth in this section. 13 of 21
260260 223 (a)"Earned paid sick time", is the time provided by a network company to an app-
261261 224based driver as calculated under subsection (c) of this section. For each hour of earned paid sick
262262 225time used by an app-based driver, the network company shall compensate the app-based driver at
263263 226a rate equal to the greater of the following:
264264 227 (I) The app-based driver's average hourly earnings, as defined in section 4 of this chapter;
265265 228or
266266 229 (2) 120 per cent of the minimum wage.
267267 230 (b)An app-based driver shall only use earned paid sick time for the same reasons set
268268 231forth for employees in paragraph (I) through paragraph (4) of subsection (c) of section 148C of
269269 232chapter 149 of the Massachusetts General Laws.
270270 233 (c)A network company shall provide a minimum of one hour of earned paid sick
271271 234time for every 30 hours of engaged time recorded on or after the effective date of this section by
272272 235an app-based driver in the network company's online-enabled application or platform. App-based
273273 236drivers shall be entitled to first use accrued earned paid sick time upon recording 90 hours of
274274 237engaged time on the network company's online-enabled application or platform. From that day
275275 238forward, an app- based driver may use earned sick time as it accrues. A contract between a
276276 239network company and an app-based driver may require the app-based driver to use earned paid
277277 240sick time in increments of up to 4 hours.
278278 241 (d)App-based drivers may carry over up to 40 hours of unused earned paid sick time
279279 242to the next calendar year, but are not entitled to use more than 40 hours in one calendar year.
280280 243Network companies shall not be required to pay out unused earned paid sick time. If an app-
281281 244based driver does not record any engaged time in a network company's online-enabled 14 of 21
282282 245application or platform for 365 or more consecutive days or the app-based driver's contract with
283283 246a network company is terminated, any unused earned paid sick time accrued up to that point with
284284 247that network company shall no longer be valid or recognized.
285285 248 (e)A network company may require certification when an app-based driver makes a
286286 249request to use more than 24 hours of earned paid sick time in a 72-hour period or when
287287 250reasonably necessary to prevent fraud. Any reasonable documentation signed by a health care
288288 251provider indicating the need for earned paid sick time taken shall be deemed acceptable
289289 252certification for absences. Nothing in this section shall be construed to require an app-based
290290 253driver to provide as certification any information from a health care provider that would be in
291291 254violation of federal law.
292292 255 Section 8. Occupational Accident Insurance.
293293 256 (a)For the purposes of this section, the following words shall have the following
294294 257meanings:-
295295 258 (1) "Average weekly earnings", the app-based driver's total earnings from all network
296296 259companies during the 28 days prior to the accident divided by four.
297297 260 (2)"Online", the time when an app-based driver is utilizing a network company's
298298 261online- enabled application or platform and can receive requests for transportation services or
299299 262delivery services from the network company or during engaged time.
300300 263 (3)"Maximum weekly compensation rate", has the same meaning as provided in
301301 264section 1 of chapter 152 of the Massachusetts General Laws. 15 of 21
302302 265 (4)"Minimum weekly compensation rate", has the same meaning as provided in
303303 266section 1 of chapter 152 of the Massachusetts General Laws.
304304 267 (b)Each network company, within 240 days of the effective date of this chapter, shall
305305 268purchase occupational accident insurance, as described in this section, for all app-based drivers
306306 269who provide transportation or delivery services through the network company's online-enabled
307307 270application or platform.
308308 271 (c)Each network company shall file with the division of insurance, no later than 30
309309 272days after the commencement of a new policy year, a copy of the policy it has purchased for
310310 273DNC couriers and TNC drivers, respectively. The division of insurance shall be treated by the
311311 274insurer as a certificate holder for purposes of receiving notice of cancellation of the policy.
312312 275 (d)The occupational accident insurance policy required under subsection (b) shall
313313 276cover medical expenses and lost income resulting from injuries suffered while the app-based
314314 277driver is online with a network company's online-enabled application or platform. Policies shall
315315 278at a minimum include a total combined single limit of $1,000,000 per accident and provide for
316316 279payment of benefits to a covered individual as follows:
317317 280 (1)Coverage for medical expenses incurred, up to at least $1,000,000 and for up to
318318 281156 weeks following the injury;
319319 282 (2)Continuous total disability payments, temporary total disability payments, and
320320 283partial disability payments for injuries that occur while the app-based driver is online equal to 66
321321 284per cent of the app-based driver's average weekly earnings as of the date of injury but not more
322322 285than the maximum weekly compensation rate, unless the average weekly earnings of the app-
323323 286based driver is less than the minimum weekly compensation rate, in which case the weekly 16 of 21
324324 287compensation shall be equal to the app-based driver's average weekly earnings. Payments under
325325 288this paragraph shall be made for up to the first 156 weeks following the injury;
326326 289 (3)For the benefit of spouses, children, or other dependents of app-based drivers,
327327 290accidental death insurance in the amount equal to 66 per cent of the app-based driver's average
328328 291weekly earnings as of the date of injury but not more than the maximum weekly compensation
329329 292rate, unless the average weekly earnings of the app-based driver is less than the minimum weekly
330330 293compensation rate, in which case the weekly compensation shall be equal to the app-based
331331 294driver's average weekly earnings, times 156 weeks for injuries suffered by an app-based driver
332332 295while the app-based driver is online with the network company's online-enabled application or
333333 296platform that result in death; and
334334 297 (4)When injuries suffered by an app-based driver while the app-based driver is
335335 298online result in death, an amount to pay for reasonable burial expenses not to exceed eight times
336336 299the maximum weekly compensation rate.
337337 300 (e)Occupational accident insurance under subsection (d) of this section shall not be
338338 301required to cover an accident that occurs while online but outside of engaged time where the
339339 302injured app- based driver is in engaged time on one or more other network company platforms or
340340 303where the app-based driver is engaged in personal activities. If an accident is covered by
341341 304occupational accident insurance maintained by more than one network company, the insurer of
342342 305the network company against whom a claim is filed is entitled to contribution for the pro-rata
343343 306share of coverage attributable to one or more other network companies up to the coverages and
344344 307limits in subsection (d). 17 of 21
345345 308 (f) Any benefits provided t an app-based driver under this section shall be
346346 309considered amounts payable under an app-based driver's compensation law or disability benefit
347347 310for the purpose of determining amounts payable under any insurance provided under section
348348 311113L of chapter 175 of the Massachusetts General Laws or for personal injury protection, as
349349 312defined in section 34A of chapter 90 of the Massachusetts General Laws.
350350 313 SECTION 5
351351 314 This act shall take effect on the later of January 1, 2025, or as provided in Article 48 of
352352 315the Amendments to the Massachusetts Constitution, as amended. 18 of 21
353353 FIRST TEN SIGNERS
354354 NAMERESIDENCECITY OR T OWNCharles Dewey Ellison, III195 West Canton Street, # 2BostonAbigail Kennedy Horrigan114 Eastern Avenue WoburnBrian Gitschier58 East Springfield Street, # 2BostonDaniel 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
355355 CERTIFICATE OF THE ATTORNEY GENERAL.
356356 September 6, 2023
357357 Honorable William Francis Galvin
358358 Secretary of the Commonwealth
359359 One Ashburton Place, Room 1705
360360 Boston, Massachusetts 02108
361361 Re: Initiative Petition No. 23-31: Initiative Petition for A Law Establishing that
362362 App-Based Drivers are not Employees, and Network Companies are not
363363 Employers, for Certain Purposes of the General Laws – Version H
364364 Dear Secretary Galvin:
365365 In accordance with the provisions of Article 48 of the Amendments to the
366366 Massachusetts Constitution, I have reviewed the above-referenced initiative
367367 petition, which was submitted to me on or before the first Wednesday of August
368368 of this year.
369369 I hereby certify that this measure is in proper form for submission to the people;
370370 that the measure is not, either affirmatively or negatively, substantially the same
371371 as any measure which has been qualified for submission or submitted to the
372372 people at either of the two preceding biennial state elections; and that it contains
373373 only subjects that are related or are mutually dependent and which are not
374374 excluded from the initiative process pursuant to Article 48, the Initiative, Part 2,
375375 Section 2.
376376 In accordance with Article 48, I enclose a fair, concise summary of the measure.
377377 Sincerely,
378378 ANDREA JOY CAMPBELL,
379379 Attorney General.
380380 Enclosure 20 of 21
381381 Summary of 23-31.
382382 This proposed law would specify that rideshare and delivery drivers who accept requests
383383 through an online-enabled application are not “employees” for purposes of certain Massachusetts
384384 laws regarding workplace conditions, minimum wages, unemployment insurance, and workers’
385385 compensation. This proposed law would also specify that rideshare and delivery companies are
386386 not “employers” for 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 companies who use
389389 digital applications and who are (1) not required to work specific days or hours; (2) not required
390390 to accept specific requests; (3) not restricted from working with multiple rideshare or delivery
391391 companies; and (4) not restricted from working in any other lawful occupation or business.
392392 The proposed law would require rideshare and delivery companies to provide drivers with
393393 a guaranteed amount of minimum compensation, equal to 120 percent of the Massachusetts
394394 minimum wage, for time spent completing requests for transportation or delivery, plus a per-mile
395395 amount for each mile driven in a privately-owned vehicle while completing a request. The per-
396396 mile amount would start at 28 cents and be adjusted yearly to increase by any percentage increase
397397 made to the Massachusetts minimum wage. The minimum compensation calculation would
398398 exclude time spent by a driver between completing one request and accepting another request. A
399399 driver whose earnings, not including tips and gratuities, fall below the minimum compensation
400400 amount would be paid the difference to be brought up to the minimum compensation amount.
401401 The proposed law would require rideshare and delivery companies to provide some drivers
402402 with a healthcare stipend. Drivers who average 25 hours or more per week completing requests for 21 of 21
403403 transportation or delivery services with a company would receive a full stipend for an average
404404 individual plan offered through the Health Connector, and drivers who average between 15 and 25
405405 hours per week completing requests for transportation or delivery services with a company would
406406 receive a 50 percent stipend.
407407 The proposed law would require rideshare and delivery companies to provide drivers with
408408 a minimum of one hour of paid sick time for every 30 hours spent completing requests for
409409 transportation or delivery services with that company.
410410 The proposed law would require rideshare and delivery companies to purchase accident
411411 insurance to provide some disability and medical benefits for drivers who are injured or killed
412412 while online with the company’s application or platform.
413413 The proposed law would prohibit rideshare and delivery companies from terminating the
414414 contract of a driver, or refusing to contract with a driver, based on race, sex, sexual orientation, or
415415 other protected characteristics unless based upon a bona fide occupational qualification or a safety
416416 need. Companies would be required to provide a driver who is terminated with an opportunity to
417417 appeal the termination with the network company.
418418 The proposed law would take effect on January 1, 2025.
419419