MADISON (WKOW) — State lawmakers considered a bill that could redefine the role of drivers on popular food delivery and ride-sharing apps in Wisconsin.
If passed, Assembly Bill 477 would require state law to say that workers who drive for apps like Uber, Lyft, DoorDash and Instacart are not employees of those companies.
Those employees would not be subject to state minimum wage laws, and the companies whose apps they run wouldn’t have to pay unemployment insurance or provide workers’ compensation benefits.
This is already a current reality for drivers who choose to join these apps. But efforts are underway in other parts of the country to have drivers recognized as employees.
This law prevents that from happening.
In lieu of traditional benefits, the bill would allow companies to choose where they pay, allowing drivers to pay health insurance premiums, transfer money to a retirement account, or when they are too sick to work. It calls for the creation of a new type of savings account that can be used by people. disease.
The account is labeled “Portable Benefits Account.” If the account opening goes ahead, Wisconsin would become the first state in the nation to do so, a point that Uber representatives repeatedly pointed out during the hearing.
Wisconsin already has other criteria used to identify whether a worker is an employee or an independent contractor. The bill would provide an additional path to current law that allows companies to classify drivers as unemployed drivers on apps they use for business.
The bill and the debate surrounding it are part of a broader debate about when companies should classify workers as “employees.”
The Wisconsin Supreme Court on Tuesday heard oral arguments in a case in which Amazon argued that some drivers should not be considered employees. A state appellate court disagreed.
Unionized workers at TrueStage, a financial services company based on Madison’s west side, also aimed to demand that the company stop replacing unionized workers with independent contractors. They went on strike earlier this year.
AB 477 and similar bills failed to pass the last Congress. The 2023 version has support from at least two Democratic senators who co-sponsored the bill.
Rep. Christine Sinicki (D-Milwaukee) said she hopes the bill faces a veto from Democratic Gov. Tony Evers if it passes the Legislature.
At Wednesday’s hearing in the Congressional State Affairs Committee, most of the criticism of the bill came from Democrats, but Republicans seemed more welcoming to the proposal.
A particularly tense exchange occurred between Rep. Francesca Hong (D-Madison), who owns a small restaurant, and Rep. Alex Dalman (R-Green Lake), who used to drive for Uber. The two companies disagreed over the value the on-demand app service provides drivers and the pressure the same companies put on small and medium-sized businesses.
Representatives from Uber, DoorDash, and Instacart all spoke in favor of the bill. They emphasized the flexibility the app claims to offer drivers.
Two drivers appeared in court and testified in favor of the bill. Both said driving for apps supports their semi-retired lifestyles.