2021 - 2022 LEGISLATURE
August 4, 2021 - Introduced by Representatives August, Rozar, Dittrich,
Kuglitsch, Thiesfeldt, Behnke, Wichgers, Brooks, Brandtjen, Drake,
Tittl, Neylon, Ortiz-Velez and Schraa, cosponsored by Senator Roth.
Referred to Committee on State Affairs.
1An Act to amend
102.07 (8) (a), 108.02 (12) (a) and 600.03 (4); and to create
102.01 (2) (ae), 102.01 (2) (an), 102.01 (2) (ann), 102.01 (2) (anp), 102.01 (2) (dc), 3
102.01 (2) (ds), 102.01 (2) (gh), 102.07 (8) (bs), 103.08, 104.01 (2) (b) 6., 108.02 4
(12) (ds), 224.55 and 632.985 of the statutes; relating to: delivery network
5couriers and transportation network drivers, Department of Financial
6Institutions' approval to offer portable benefit accounts, providing for
7insurance coverage, and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Delivery and transportation network companies
This bill provides that under specific circumstances, delivery network couriers
and drivers for transportation network companies (application-based drivers) are
not employees of the delivery network companies and transportation network
companies (network companies) for the purposes of worker's compensation
insurance, minimum wage laws, and unemployment insurance. In the bill,
“application-based driver” is defined as a delivery network courier or participating
driver who provides services through the online-enabled application, software, or
system of a network company.
Under the bill, if a network company does not engage in all of the following
practices, an application-based driver is not an employee of the company: 1)
prescribe specific dates, times of day, or a minimum number of hours during which
the driver must be logged into the network company's online-enabled application,
software, or system; 2) terminate the contract of the driver for not accepting a specific
request for transportation or delivery service request; 3) restrict the driver from
performing services through other network companies except while performing
services through that network company; and 4) restrict the driver from working in
any other lawful occupation or business.
Portable benefit accounts
Under the bill, if certain conditions are satisfied, a financial institution or other
person may obtain approval from the Department of Financial Institutions to offer
portable benefit accounts. A “portable benefit account” is an account administered
by such an approved financial institution or other person (portable benefit account
provider) from which an individual may receive distributions for the purposes
described below. A network company may contribute to a portable benefit account
of an application-based driver who meets certain eligibility requirements (eligible
driver) a percentage of the driver's earnings, and the driver may also contribute to
the portable benefit account. An eligible driver may receive a distribution from a
portable benefit account for the following purposes: 1) to compensate for lost income
due to an illness or accident or loss of work due to certain other events; 2) to transfer
the money to an individual retirement account; or 3) to pay health insurance
premiums. A portable benefit account provider may include an income replacement
benefit to be made available to eligible drivers upon the occurrence of an event under
The bill provides that a network company may purchase blanket accident and
sickness insurance for its application-based drivers. A network company that
purchases such a policy must file a copy of it with the Office of the Commissioner of
Insurance within 30 days of the beginning of the policy year. Additionally, the
network company must notify OCI at least 30 days prior to the effective date of the
policy's cancellation or nonrenewal, and OCI is treated as a certificate holder for
purposes of receiving the notice. The bill specifies that the state's worker's
compensation laws do not apply to the blanket accident and sickness insurance
The bill also provides that a network company may carry, provide, or otherwise
make available occupational accident insurance to cover the medical expenses and
lost income resulting from an injury suffered by an application-based driver while
engaged on the company's online-enabled application, software, or system. The bill
requires that the policy provide, in aggregate, at least $1,000,000 of coverage and,
at a minimum, all of the following:
1. Coverage for medical expenses incurred of at least $250,000 and for up to 104
weeks following the injury.
2. Continuous total disability payments and temporary total disability
payments for up to 104 weeks following the injury that equal one-sixth of the
application-based driver's total earnings from all network companies during the 28
days prior to the accident, subject to limitations in worker's compensation law.
3. For the benefit of a spouse, child, or other dependent of an application-based
driver who suffers an injury that results in death, an accidental death benefit equal
to the death benefit provided under worker's compensation law.
The bill provides that if an accident is covered by occupational accident
insurance maintained by more than one network company, the insurer of the
company against whom a claim is filed is entitled to a contribution for the pro rata
share of coverage attributable to one or more other network companies, up to the
above coverages and limits.
Under the bill, any benefit provided to an application-based driver under an
occupational accident insurance policy is treated as amounts payable under a
worker's compensation law or disability benefit for the purpose of determining
amounts payable under uninsured or underinsured motorist coverage.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
102.01 (2) (ae) of the statutes is created to read:
(ae) “Application-based driver” means a delivery network courier 3
or participating driver who provides services through the online-enabled 4
application, software, or system of a network company.
102.01 (2) (an) of the statutes is created to read:
(an) “Delivery network company” means a business that maintains 7
an online-enabled application, software, or system to facilitate delivery services 8
within this state.
102.01 (2) (ann) of the statutes is created to read:
(ann) “Delivery network courier” means an individual who provides 11
delivery services through a delivery network company's online-enabled application, 12
software, or system.
102.01 (2) (anp) of the statutes is created to read:
(anp) “Delivery services” means the fulfillment of a delivery request 2
by picking up from any location any item and delivering the item, by using a 3
passenger vehicle, a bicycle, a scooter, public transportation, or other similar means 4
of transportation or by walking, to a location selected by the customer located within 5
50 miles of the pickup location. “Delivery services” includes the selection, collection, 6
or purchase of items by a delivery network courier, as well as other tasks incidental 7
to the delivery.
102.01 (2) (dc) of the statutes is created to read:
(dc) “Network company” means a delivery network company or a 10
transportation network company.
102.01 (2) (ds) of the statutes is created to read:
(ds) “Participating driver” has the meaning given in s. 440.40 (3).
102.01 (2) (gh) of the statutes is created to read:
(gh) “Transportation network company” has the meaning given in 15
s. 440.40 (6).
102.07 (8) (a) of the statutes is amended to read:
(a) Except as provided in pars. (b)
(bm), and (bs)
, every 18
independent contractor is, for the purpose of this chapter, an employee of any 19
employer under this chapter for whom he or she is performing service in the course 20
of the trade, business, profession or occupation of such employer at the time of the 21
102.07 (8) (bs) of the statutes is created to read:
(bs) An application-based driver is not an employee of a network 24
company if the company refrains from doing all of the following:
1. Prescribing specific dates, times of day, or a minimum number of hours 2
during which the application-based driver must be logged into the network 3
company's online-enabled application, software, or system.
2. Terminating the contract of the application-based driver for not accepting 5
a specific delivery service request or request for transportation, except as prohibited 6
by s. 440.45 (2).
3. Restricting the application-based driver from performing services through 8
other network companies except while performing services through that network 9
4. Restricting the application-based driver from working in any other lawful 11
occupation or business.
103.08 of the statutes is created to read:
13103.08 Application-based drivers; portable benefits accounts. (1) 14Definitions.
In this section:
(a) “Application-based driver” has the meaning given in s. 102.01 (2) (ae).