Lawmakers introduce bill to regulate app-based platforms’ wage decisions for workers

A trio of House Democrats wants to put guardrails on digital labor platforms like Uber, Lyft, DoorDash and Amazon.

They authored the Empowering App-Based Workers Act that would prevent automated decisions from leading to discrimination and price-gouging. They said the bill also ensures transparency for workers regarding how their data is used.

The legislation is the brainchild of Reps. Ilhan Omar of Minnesota, Pramila Jayapal of Washington and Donald Norcross of New Jersey.

“App-based workers work long hours, often with no consistency or predictability of how much they will make,” Ms. Jayapal said. “They are at the whim of algorithms that make automated decisions about who gets to work, and where, and when. Workers and consumers deserve a better system, where workers are protected, employment laws are followed, and where consumers have a transparent price.”

The industry opposes the legislation.

Flex, an association that represents U.S. app-based rideshare and delivery platforms such as DoorDash, Grubhub, Instacart, Lyft, and Uber, said that the legislation would hurt consumers and the gig workers.

“This bill fundamentally misunderstands the technology that powers digital platforms and raises serious anti-innovation and consumer privacy concerns,” Flex CEO Kristin Sharp said in a statement to The Washington Times. “At a time when Americans are concerned about an ongoing affordability crisis, Congress should not focus on legislation that creates more red tape for the millions of Americans who use app-based work for fast, flexible earning.”

The lawmakers also alleged that Uber and Lyft regularly paid drivers less than the minimum wage in 2024, while increasing the prices consumers pay for the service. The bill would require detailed weekly pay statements and itemized receipts for workers.

Ms. Omar said that this legislation will make clear how these companies use data, set wages and make decisions.

“Gig workers like Uber and Lyft drivers in my home state of Minnesota deserve a fair share of the wealth they create,” Ms. Omar said. “App-based corporations have hidden behind AI algorithms and predatory take rates while drivers’ pay shrinks and executive profits soar.”

The percentage of a ride fare that corporations keep is often around 40%, but can be as high as 70%. The bill would ensure that drivers receive at least 75% of the total amount paid by a consumer for each transaction.

Lyft said it is the first and only rideshare company to guarantee its drivers will earn a minimum of 70% of rider payments.

“This proposed legislation threatens the very flexibility that app-based workers value most,” a Lyft spokesperson said. “We’re committed to working with policymakers to develop solutions that protect what drivers want.”

The bill would also require the disclosure of how electronic monitoring systems are used to make automated work assignment decisions, and also prohibit app-based platforms from paying different amounts to employees performing similar or comparable work.

Mr. Norcross said this bill is a “long-overdue step” toward fairness and transparency.

“By guaranteeing transparent payment information and higher wages, these workers will finally receive a fair day’s pay for a hard day’s work,” Mr. Norcross said. “App-based workers deserve a good-paying job where they are treated with dignity, compensated fairly, and protected from exploitation.”

The National Employment Law Project, a nonprofit worker advocacy organization, supports the bill and said its sponsors are “listening to app-based workers.”

“Corporations that use hidden algorithms to determine app-based workers’ pay, job assignments, and discipline must be held accountable,”  Rebecca Dixon, president and CEO of the organization, said. “This bill will give workers the transparency they have been demanding for years and will help move us toward a good-jobs economy where all workers are treated fairly.”

Democratic sponsors include Reps. Dan Goldman of New York, Summer Lee of Pennsylvania, LaMonica McIver of New Jersey, Mark Pocan of Wisconsin, Mark Takano of California, Rashida Tlaib of Michigan and Delegate Eleanor Holmes Norton of the District of Columbia.