Protections for Delivery Network Company Drivers

The bill requires a delivery network company (DNC) operating in the state to provide various disclosures to its drivers and to consumers of the DNC regarding payments that a consumer makes to the DNC and the amount that the DNC then pays to a driver.

The bill also requires a DNC to provide specified disclosures to the division of labor standards and statistics (division) in the department of labor and employment regarding the DNC's operations in the state. The division shall make this information available to the public. 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 bill imposes specific requirements on the manner in which a DNC may provide contracts to drivers and merchants.

The bill 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
• Imposing requirements for how a DNC may amend the DNC's deactivation policy; and
• Creating internal account deactivation challenge procedures for a deactivation reconsideration meeting for administrative review of a 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 division may adopt rules to provide reasonable safety and health protections for drivers. The bill 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 bill requires that DNCs allow drivers at least 120 60 seconds to decide to accept a delivery task offer.

The division may investigate and impose fines against a DNC for violations of the bill. A consumer or driver aggrieved by a violation may file a civil suit against the DNC that committed the violation. The bill 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 bill. by April 1, 2025. 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 bill.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)