Senate Bill 256 aims to redefine the employment status of delivery network couriers and transportation network drivers, classifying them as independent contractors rather than employees under specific conditions. The bill stipulates that if a network company does not impose certain restrictions on drivers—such as mandating specific working hours, terminating contracts for declining service requests, or limiting drivers' ability to work with other companies—then those drivers will not be considered employees for the purposes of workers' compensation, minimum wage laws, and unemployment insurance. Additionally, the bill introduces provisions for portable benefit accounts, allowing network companies to contribute to these accounts for eligible drivers, which can be used for various purposes, including compensating for lost income due to illness or injury.

Furthermore, the bill establishes guidelines for insurance coverage, permitting network companies to provide group or blanket accident and sickness insurance for their drivers. It mandates that these companies must make their insurance policies available upon request and outlines the minimum coverage requirements. The bill also includes new definitions for terms such as "application-based driver," "delivery network company," and "transportation network company," while amending existing statutes to reflect these changes. Notably, it creates penalties for improper use of funds from portable benefit accounts and clarifies the tax implications of contributions to these accounts. Overall, the bill seeks to enhance the benefits and protections available to drivers while maintaining their status as independent contractors.

Statutes affected:
Bill Text: 71.63(2), 71.63, 102.07(8)(a), 102.07