A bill that passed both the Assembly and the Senate Wednesday would automatically classify ride-share and certain delivery drivers as independent contractors. (Photo by Michael M. Santiago/Getty Images)

Legislation that would declare that drivers for app-based ride-share and delivery businesses are independent contractors will go to Gov. Tony Evers after clearing both houses of the Legislature Wednesday.

The legislation also authorizes the affected companies to offer drivers benefit plans without classifying them as employees.

After two previous attempts to pass the bill, in the Legislature’s 2021-22 and 2023-24 sessions, the Senate and Assembly votes Wednesday — mostly along party lines — marked the first time the measure will get to the governor’s desk.

The bill — AB 269 — applies to drivers for delivery and transportation businesses such as Uber, Lyft and DoorDash who are hired by customers using online apps or similar technology.

It defines those drivers as independent contractors who are not subject to laws guaranteeing minimum wage, unemployment compensation and workers compensation.

Update: The bill passed the Assembly on a vote of 56-36, but as of Friday, the Assembly’s official journal of the session reported that three of four Assembly Democrats who were recorded as voting “yes” for the bill asked that their votes be registered as “no,” and their requests were granted, resulting in a new tally of 53-39. One Democrat supported the bill. 

WisPolitics.com reported the changed votes on Friday. WisPolitics.com also reported that according to the office of Assembly Majority Leader Tyler August, Assembly chief clerk’s office and the Legislative Technical Services Bureau “conducted a thorough testing” of the Assembly’s electronic voting system and found no problems.

In the Senate, the bill passed 16-15, with no Democratic support and one Republican, Sen. Steve Nass (R-Whitewater) voting in opposition.

As of Wednesday the Wisconsin Ethics Commission had no public reports on money spent lobbying for or against the legislation. But since early this year DoorDash has been running digital ads on WisPolitics.com and elsewhere promoting the legislation’s “portable benefits” provision.

DoorDash issued a statement Wednesday lauding the bill’s passage. “Dashers and customers in Wisconsin have sent hundreds of letters to the governor, urging him to sign the bill into law,” the company stated.

If Evers signs the measure, Wisconsin would be the first state in the country to enact such legislation. DoorDash has pilot benefit programs without legislation in Pennsylvania, Maryland and Georgia, the company said.

While the bill authorizes the companies to offer the benefit plans, it does not require them to do so. It sets the standards of coverage for such plans if they are offered. It also allows the businesses to establish deferred compensation retirement plans for their drivers.

“This bill will provide meaningful, affordable benefit opportunities for these independent contractors,” said Rep. Alex Dallman (R-Green Lake) at an Assembly press conference before Wednesday’s floor session. “They’ll be able to solidify that they get to choose when and where they want to work, the freedom that they have to be able to earn benefits through the work that they provide for these different companies, and be able to really set themselves up for a future of success by having things such as health insurance.”

A new independent contractor standard

The legislation lists four practices that would exclude a ride-share or delivery company from the independent contractor protections: If it requires drivers to be logged into the service on certain dates, certain times or for a minimum number of hours; if it terminates a driver’s contract for not accepting a specific service request; if it bars drivers from working with other such businesses; and if it bars drivers from working in any other occupation or business.

A company would have to flunk all four of those provisions to be disqualified.

In both the Senate and the Assembly, critics said the bill would serve the contracting companies, not their drivers.

“We don’t need to create a new category of workers with fewer protections, which is what this bill does,” said Sen. Melissa Ratcliff (D-Cottage Grove) on the Senate floor. “The sad realization is that all of the so-called benefits talked about in this bill may never come to fruition for any gig driver. And yet the bill makes mandatory the loss of employee status for every single app-based driver.”

Sen. Julian Bradley (R-New Berlin), said drivers testified in favor of the legislation that “they don’t want to be employees.” Bradley is the lead author of the Senate companion legislation. 

“If you watch any of the hearings, they’ll tell you, ‘We love the flexibility of being an independent contractor.’ They chose to be independent contractors because of the flexibility.”

Under state law and regulations, the state Department of Workforce Development (DWD) uses a nine-part test to determine if workers are employees rather than independent contractors, said Rep. Christine Sinicki (D-Milwaukee) during the Assembly debate.

“The big problem with this bill, though, is that it actually allows the executives of these companies to dictate their own test to fit their own needs,” Sinicki said.

‘Difficult way to pay the bills’

“Driving for ride-sharing services like Lyft or Uber is a grueling, difficult way to pay the bills,” said Rep. Ryan Clancy (D-Milwaukee), who said he’s a ride-share driver.

He said the industry’s claims that a driver collects $25 or $30 an hour are based on the travel time alone.

“So in an hour, if I take two people on rides which cost them $7 each and I get about $3.50 from each of those, Lyft might report that I got $30 an hour because they don’t count all the minutes between the rides. But I actually gross $7 that hour,” Clancy said.

The bill allows a company to contribute up to 4% of a driver’s earnings to the proposed benefits account. He said Uber drivers have an average weekly revenue of $513, so 4% “would come out to just $267 a quarter” — too little to cover a health insurance premium.  

The bill aims to keep drivers from being classified as employees because “it’s far easier to exploit an independent contractor than it is an employee,” he said.

Clancy said drivers across the U.S. have been “trying to get recognized as the employees they are, and to try to get access to basic benefits and workplace protections and access to unemployment insurance, just like the vast majority of employees in Wisconsin.”

Rep. Sylvia Ortiz-Velez (D-Milwaukee), a co-sponsor of the bill was the only Assembly Democrat to support, although three other Democrats were initially recorded as voting “yes” before being granted a request to change their vote to “no.”

“I heard countless testimonies from drivers who wanted the flexibility of being independent contractors,” Ortiz-Velez said, adding that she has received “a ton of emails, a ton of support” for the bill this year as well as in the last two-year session.

“This bill offers portable benefits that right now don’t exist,” Ortiz-Velez said. “It won’t exist if we don’t pass this bill.”

Dallman, the bill’s lead Assembly author, said on the Assembly floor that critics of the bill can simply choose not to work for the companies it covers.

“This is for the independent contractor and the freedom that they have to get ahead in life by working a couple extra jobs, a couple extra trips on a weekend to make a little bit of extra cash,” Dallman said. “While at the same time, voluntarily partnering with one of these companies . . .  to pay for their benefits, to pay for their retirement. Again, the opportunity for workers to make choices on their own to get ahead in life.”

This report was updated Friday, 6/20/2025, to update the Assembly vote on SB 269 after the Assembly journal reported on a request by three Democrats to change how their vote had been recorded.

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