Delivery and ride-sharing apps like DoorDash and Uber will be required to deposit money into an account their workers can employ to pay for benefits, under legislation currently being considered by the Pennsylvania Senate.
Supporters of the bill say it would provide protections for workers classified as independent contractors under Pennsylvania law, who are not entitled to benefits such as workers’ compensation or unemployment benefits.
But Senate Bill No. 967 faced opposition from Democratic lawmakers during a vote in the Senate Banking and Insurance Committee on Tuesday.
Senator Sharif Street (Democrat of Philadelphia), the ranking Democrat on the committee, told the committee, Vote 8-6 that while the bill’s intent to provide some support for app-based workers is admirable, it would make it harder for app-based workers to access benefits. He noted that unions, including the AFL-CIO and Service Employees International Union 32BJ, have opposed the bill.
“While this may seem like more flexibility, it actually allows companies to avoid contributing to employee benefit accounts, which further reduces the minimum protections offered,” Street said, urging a vote against the bill.
Street told the Capital-Star that he believes the bill is too broad because anyone hired through an app would be classified as an independent contractor who is not entitled to benefits.
“Employers can thwart employee benefits laws by hiring through apps,” Street said. “Just because someone was hired through an app doesn’t mean they’re an independent contractor.”
The amendment to the bill removed the requirement for companies to provide workers with occupational injury insurance, which Street said was one of the positive aspects of the original bill.
Sen. Ryan Aument (R-Lancaster), the lead sponsor of SB 967, said most temporary workers prefer to maintain their independent contractor status and his legislation is an attempt to provide them with “the benefits and protections they deserve.”
“Indeed, most temporary workers have full-time jobs or access to benefits and use temporary work to supplement their income,” Augment said in a statement to the Capital-Star. “I think it’s time for Pennsylvania to recognize this modern workforce and provide them with these benefits and protections, while also respecting their desire to maintain the flexibility these jobs provide.”
The bill is awaiting a roll-call vote by the full Senate.
DoorDash launched a pilot benefit account program in Pennsylvania earlier this year in partnership with the Democratic governor. Josh Shapiro Support. It gives workers the option to sign up and receive a percentage of their earnings as contributions to a benefit account, allowing them to save for retirement, pay health care costs or compensate for lost income. Shapiro’s office did not respond to a request for comment on SB 967.
In a statement, DoorDash said about 4,400 people who work for the company have signed up to participate. As of behind schedule July, DoorDash had distributed $440,000 to participating employees.
In an interview with a DoorDash spokesman, DoorDash employee Jim Ryan of Natrona Heights in Allegheny County said he signed up for the program immediately after it was announced, adding that the account serves as a safety net for unexpected expenses and also as a way to travel to Disneyland with his wife and grandson.
Ryan said the account also serves as an incentive to spend more time at DoorDash, since contributions to the benefits account enhance his earnings. But Ryan said his wife’s employer provides health insurance for them.
DoorDash and other gig economy employers have fought a nationwide movement to have their workers classified as employees, which would give them access to benefits and protections under state and federal law. Only DoorDash has issued $930,000 in lobbying Congress this year, according to opensecrets.org.
Supporters of maintaining independent contractor status for temporary workers say these workers value the flexibility of not having to work a unyielding schedule or take on tasks in between other responsibilities.
Ryan said that’s what drew him to DoorDash, as his mother had a stroke, his wife was undergoing cancer treatments, and he and his wife began helping care for their grandson.
Gabe Morgan, vice president and director of SEIU 32BJ in Pennsylvania, said the Pennsylvania Legislature should focus on giving temporary workers the same protections unions have fought for for decades. Lawmakers could also give temporary workers the right to collective bargaining under state law, Morgan said.
“We fundamentally believe the problem in Pennsylvania is that workers don’t have enough rights, and to take away their rights because they work for an app is a terrible thing,” Morgan said.
