Bill to Increase Protections for Gig Workers Clears Committee

DENVER, CO – Legislation to improve protections for gig workers by increasing wage and task transparency cleared the Senate Business, Labor, and Technology Committee today.

Delivery Network Companies (DNCs) are entities that operate online apps or platforms that allow users to order goods for delivery, such as UberEats, DoorDash, and GrubHub. Sponsored by Senators Nick Hinrichsen, D-Pueblo, and Kevin Priola, D-Henderson, HB24-1129 aims to improve wage and task transparency for DNC drivers by requiring disclosures with specific information and providing workers with the ability to make informed decisions about which tasks to accept.

“For delivery drivers working for companies like UberEats or GrubHub, details about fares and earnings are shrouded in mystery,” said Hinrichsen. “This creates uncertainty about their take home wages and can make it difficult to budget for their family. This important bill will increase protections for delivery drivers and hold DNCs accountable to fair wages and employment practices, just like every other industry.”

“This year, we’re taking major strides to guarantee delivery drivers transparency around their wages and work,” said Priola. “Providing clear information about how much a company is making and how much a driver is taking home will create a better understanding of delivery processes for drivers and consumers alike. I’m proud to champion this bill and Senate Bill 75, both of which ensure all app-based drivers receive the essential details about their work that they deserve.”

Before a driver accepts a delivery task, DNCs would be required to disclose:

• An estimated or actual amount the driver will earn for the task;

• The number of transactions involved in the task;

• The address(es) where the food, beverages, or other goods must be picked up from;

• The direction from where the driver is required to pick up the goods and the location where goods must be delivered;

• The estimated or actual time it will take for the driver to complete the task; and

• The estimated or actual distance the driver will travel for the task.

Under the bill, when a consumer is prompted to leave a tip for a delivery driver who is paid based on a per-delivery-task or per-transaction basis, DNCs would be required to disclose the amount of money that the consumer paid or will pay for the transaction. It would also require the DNC to pay the entire tip to the driver.

Finally, the bill would require a DNC to develop and maintain an account deactivation policy that clearly establishes procedures for deactivating a driver from the platform, allows a driver to request a reconsideration and ensures a driver is not penalized for failing to respond to a delivery task offer.

HB24-1129 now moves to the Appropriations Committee for further consideration. Track the bill’s progress HERE.