Protections for Delivery Network Company Drivers

Beginning on January 1, 2025, the act requires a delivery network company (DNC) to provide various disclosures to its drivers and to consumers of the DNC. The disclosures include payments that a consumer makes to the DNC, the amount that the DNC then pays to a driver, and the distances traveled to complete a delivery task.

A DNC is prohibited from decreasing the amount the DNC pays a driver for a delivery task based on the amount of a consumer's tip for that delivery task, and a DNC must pay the driver all tips paid by the consumer.

The act imposes specific requirements on the manner in which a DNC may provide contracts to drivers and merchants.

The act specifies how a DNC may deactivate a driver from the DNC's digital platform, including:

• Requiring that a DNC disclose specified information about the DNC's deactivation policy and any revisions to the policy to drivers; and
• Creating internal account deactivation challenge procedures by which a driver may challenge the driver's deactivation and take steps, if any, to remedy a violation and become reinstated on the DNC's digital platform.

The act requires that, when a DNC connects a consumer to a driver, the DNC prompt the consumer to encourage the consumer to ensure driver safety upon arrival, including ensuring a clear, well-lit, safe delivery path and properly securing all pets.

The act requires that DNCs allow drivers at least 60 seconds to decide to accept a delivery task offer.

The division may investigate and impose fines against a DNC for violations of the act. A consumer or driver aggrieved by a violation may file a civil suit against the DNC that committed the violation.

The act exempts a DNC from complying with certain requirements with respect to drivers who receive an annual federal form W-2 from the DNC.

The director of the division is required to adopt rules necessary to implement the requirements of the act.

For the 2024-25 state fiscal year, $163,409 is appropriated from the general fund to the department of labor and employment for use by the division of labor standards and statistics to implement the act.

APPROVED by Governor June 4, 2024

PORTIONS EFFECTIVE August 7, 2024

PORTIONS EFFECTIVE January 1, 2025
(Note: This summary applies to this bill as enacted.)