Relating to: delivery network couriers and transportation network drivers, Department of Financial Institutions’ approval to offer portable benefit accounts, providing for insurance coverage, modifying administrative rules related to accident and sickness insurance, and granting rule-making authority. (FE)
What changed between versions
Added precise legal definitions for 'application-based driver,' 'delivery network company,' and 'delivery services' to clarify who is covered by the new rules.
Established that application-based drivers are not employees if the company refrains from controlling their schedules, terminating contracts for specific ride refusals, or restricting their ability to work for other companies.
Created a new portable benefit account system where companies and drivers can contribute up to 4% of quarterly earnings to fund future benefits like lost income or insurance premiums.
Mandated that network companies provide group or blanket accident and sickness insurance with a minimum aggregate coverage of $1,000,000.
Introduced a 10% penalty for owners of portable benefit accounts who use distributions for purposes other than those explicitly allowed by law.
Set the effective date for new tax deductions and penalties to apply to taxable years beginning after December 31, 2024.
