AB 477

Delivery and transportation network companies

General

This bill provides that under specific circumstances, delivery network couriers

and drivers for transportation network companies (application-based drivers) are

not employees of the delivery network companies and transportation network

companies (network companies) for the purposes of worker's compensation

insurance, minimum wage laws, and unemployment insurance. In the bill,

“application-based driver” is defined as a delivery network courier or participating

driver who provides services through the online-enabled application, software, or

system of a network company.

Under the bill, if a network company does not engage in all of the following

practices, an application-based driver is not an employee of the company: 1)

prescribe specific dates, times of day, or a minimum number of hours during which

the driver must be logged into the network company's online-enabled application,

software, or system; 2) terminate the contract of the driver for not accepting a specific

request for transportation or delivery service request; 3) restrict the driver from

performing services through other network companies except while performing

services through that network company; and 4) restrict the driver from working in

any other lawful occupation or business.

Portable benefit accounts

Under the bill, if certain conditions are satisfied, a financial institution or other

person may obtain approval from the Department of Financial Institutions to offer

portable benefit accounts. A “portable benefit account” is an account administered

by such an approved financial institution or other person (portable benefit account

provider) from which an individual may receive distributions for the purposes

described below. A network company may contribute to a portable benefit account

of an application-based driver who meets certain eligibility requirements (eligible

driver) a percentage of the driver's earnings, and the driver may also contribute to

the portable benefit account. An eligible driver may receive a distribution from a

portable benefit account for the following purposes: 1) to compensate for lost income

due to an illness or accident or loss of work due to certain other events; 2) to transfer

the money to an individual retirement account; or 3) to pay health insurance

premiums. A portable benefit account provider may include an income replacement

benefit to be made available to eligible drivers upon the occurrence of an event under

1) above.

Insurance coverage

The bill provides that a network company may carry, provide, or otherwise

make available group or blanket accident and sickness insurance for its

application-based drivers. A network company that purchases such a policy must

provide a copy of the policy to the Department of Safety and Professional Services no