(The Center Square) – A bill that would create portable benefits options such as health care and retirement for gig workers who drive for companies such as Uber or DoorDash passed both the Wisconsin Senate and Assembly.
DoorDash estimated that there are 100,000 app-based workers in the state. Wisconsin would be the first state to create such an option.
“While today is a huge victory for Wisconsin Dashers, the work is not quite done,” DoorDash said in a statement. “Gov. Evers still needs to sign this bill into law. We look forward to working with the governor to make Wisconsin a national model for empowering independent workers with the benefits and security they deserve.”
Assembly Bill 269 passed the Assembly 56-36 and was concurred by the Senate 17-15.
The bill was applauded by legislative workers and the companies but critics say it is a covert way to deny employment protections for these drivers.
“The real point of this bill, of dangling possible benefits to workers, is that it creates a special exemption for these powerful corporation tech giants at the expense of hard-working Wisconsinites, our families and every taxpayer,” said Sen. Melissa Ratcliff, D-Cottage Grove. “Let’s be clear about what this bill is. It’s not a bold new idea, it’s a corporate strategy, an attempt to avoid treating workers as employees and to sidestep the legal, moral and economic responsibilities that come with that.”
A fiscal note on the bill stated that the bill would create a staff costs of $180,500 for two new employees in the Department of Workforce Development to audit and administer the program while it would lead to 2.7 million less collected for unemployment benefits from the companies “due to transportation network companies not having to pay into to the UI Trust Fund for drivers who would be considered employees under current law, but not under this bill.”
Americans for Prosperity-Wisconsin applauded the bill, saying it allows workers to maintain their independence while gaining access retirement savings, health insurance and occupational accident coverage.
The bill would allow workers who make more than $750 in a calendar year to be eligible for a portable benefits account, with the company being obligated to pay 4% of the driver’s earnings in the previous quarter, minus tips, if a company contributes to the account.
AMERICA MUST LEAD ON THE GIG ECONOMY — OR OTHERS WILL SET THE RULES
Contributions to the account from drivers will be tax preferred and subtracted from their income for state income tax purposes.
“We are grateful to the principled lawmakers for standing up for these workers and supporting the economic freedoms they deserve,” said AFP-WI State Director Megan Novak. “Because of their leadership, we are one step closer to empowering a workforce that works for everyone. AFP-WI urges Governor Evers to sign this bill into law and deliver the benefits Wisconsin workers deserve.”