Schatz introduces legislation to help app-based workers

Hawai‘i Sen. Brian Schatz and Connecticut Sen. Chris Murphy, both Democrats, have introduced the “Empowering App-Based Workers Act,” new legislation to improve transparency on how app companies operate and help boost wages for rideshare drivers and delivery app workers.

“Every day rideshare drivers and delivery app workers work long hours and travel many miles to make a living, often without knowing how much money they’ll make. Our bill would shed some light on how apps determine work assignments and pay, ensuring workers are treated and paid fairly,” Schatz said.

Millions of workers across multiple industries, report to work by turning on an app. These platforms collect data from both workers and consumers to shape working conditions, evaluate workers, and make work-related decisions, including decisions on how much to pay a worker, which workers get which assignments, and whether, when, or for how long a worker will be suspended or “deactivated.” All this is done with systems that are not transparent to workers, consumers, or regulators, creating information imbalances that mask wage theft, discrimination, and price-gouging, according to an announcement.

The Empowering App-Based Workers Act would create a level playing field for workers managed by digital labor platforms by:

• Requiring disclosure of electronic monitoring and automated decision systems uses, including how they are used to determine pay and other work decisions.
• Providing itemized receipts to workers and consumers after every work assignment.
• Providing workers receive weekly pay statements with relevant information on their compensation.
• Ensuring rideshare workers receive at least 75 percent of the amount paid by consumers.
• Stopping platforms from using interfaces that contain unfair or deceptive information on compensation.

“We applaud Senators Schatz and Murphy for listening to workers’ demands and introducing the Empowering App-Based Workers Act,” said Rebecca Dixon, president and chief executive officer of NELP. “App-based workers have long sought better pay and greater accountability from corporations that use hidden algorithms to determine pay, work assignments, and discipline. This legislation is an important step forward in building a good-jobs economy where all workers have expansive rights and thrive in good jobs.”

“Senator Schatz’s bill is a great first step toward protecting app-based workers from hidden fees, undue surveillance, and algorithms that violate their civil rights. It also creates mechanisms to hold Big Tech accountable when their greed harms workers,” said Jody Calemine, AFL-CIO Director of Advocacy.