Wisconsin Assembly Bill AB477

Wisconsin 2023-2024 Regular Session

• Introduced: 10/12/23
• Refer: 10/12/23
• Failed: 4/15/24

Caption

Delivery network couriers and transportation network drivers, Department of Financial Institutions' approval to offer portable benefit accounts, providing for insurance coverage, modifying administrative rules related to accident and sickness insurance, and granting rule-making authority. (FE)

Impact

The bill also mandates that network companies provide group or blanket accident and sickness insurance for their drivers. This insurance policy must include significant coverage, ensuring that drivers have access to benefits for medical expenses and lost income resulting from injuries sustained while performing transportation or delivery services. Additionally, network companies are required to submit certain documentation regarding these insurance policies to the Department of Safety and Professional Services, enhancing regulatory oversight.

Summary

Assembly Bill 477 addresses the employment status and insurance coverage of application-based drivers for delivery and transportation network companies in Wisconsin. It establishes that under specific conditions, these drivers will not be classified as employees with respect to worker's compensation, minimum wage laws, or unemployment insurance. This redefinition aims to clarify the legal status of drivers who engage with platform-based services, distinguishing their rights and responsibilities from traditional employment arrangements.

Contention

One notable point of contention revolves around the treatment of application-based drivers. Supporters of AB477 argue that it protects the flexibility of gig work, allowing individuals to operate without the constraints typical of traditional employment. Conversely, critics raise concerns that this could limit drivers' access to essential benefits and protections typically afforded to employees, questioning the adequacy of the proposed insurance solutions compared to full employment benefits.