At a news conference Tuesday in the state Capitol, Rachel Smith of New Berlin speaks in favor of a bill that would make app-based drivers independent contractors and allow the businesses they drive for to provide some benefits. The bill was authored by Sen. Julian Bradly, on the right. (Photo by Erik Gunn/Wisconsin Examiner)

Backers of legislation that would block drivers from app-based rideshare and delivery businesses from being declared employees are making a full-court press to persuade Gov. Tony Evers to sign the measure into law.

If enacted, AB 269 would automatically classify drivers for Uber, Lyft, DoorDash and similar businesses as independent contractors — bypassing current Wisconsin laws that differentiate independent contractors from direct employees. It would exclude those drivers from Wisconsin’s unemployment insurance, workers compensation and minimum wage laws.

The bill would also allow those businesses to set up payroll plans to fund benefit programs for drivers, but it would not require them to do so.

Along with other bills that passed both houses after May 8, the Legislature’s calendar requires the independent contractor measure to go to Evers on Thursday, Aug. 7. Evers hasn’t spoken publicly about the bill, but opponents contend it deprives drivers of worker protections in return for meager benefits.

“It just seems to be a PR move to entrench drivers’ status as independent contractors,” said state Rep. Ryan Clancy (D-Milwaukee), who drives for Lyft and who voted against the bill in the Assembly. 

A heavy lobbying campaign for which DoorDash has been the most visible sponsor has put all the attention on the benefits provision. On Tuesday, Chamber for Progress, a tech business lobbying group, organized a press conference in the state Capitol to urge Evers to sign the bill.

State Sen. Julian Bradley (R-New Berlin), the bill’s Senate author, said it would allow the driving-app companies “to voluntarily contribute to portable benefit accounts that travel with the worker and allow them to use the funds for health care, sick time or retirement without stripping workers of their independence.”

Gig workers “want to be independent,” said Ruth Whittaker, of Chamber for Progress. “We should protect their independence and the flexibility of gig work, and we should also give them access to benefits.”

Joe DeRose, a retired state employee, said his work driving for DoorDash provided “flexible income to help with rising costs” without tying him to a fixed schedule.

“I strongly support portable benefits,” DeRose said. “These accounts would let app-based workers save for unforeseen events or retirement without giving up the flexibility that makes this work so appealing.”

Rachel Smith of New Berlin said she delivers for DoorDash while building an online wellness business.

“The reality is, like many entrepreneurs and independent workers, I don’t have access to traditional benefits, so this portable benefits legislation would change that,” Smith said. “Portable benefits would let me plan for my future without giving up the freedom that makes this work possible in the first place.”

“Without this offer, there are no portable benefits,” said state Rep. Sylvia Velez-Ortiz (D-Milwaukee), who cast the only Democratic vote for the bill in the Assembly. “This is something that the platforms are wanting to do on their own, and government should not stand in their way of doing what they know is right.”

While Evers hasn’t said whether he’ll sign or veto the bill, its passage with only Republican votes — besides that of Ortiz-Velez — has almost always been a precursor to a veto.

Wisconsin labor laws include a series of tests to determine if a worker is an independent contractor or an employee.

An employee is covered by unemployment insurance, workers compensation insurance and state labor standards that include minimum wage, work hours and overtime regulations. An independent contractor is not.

The worker-business relationship must meet each one of nine qualifications to be exempt from workers comp law. It must meet 6 out of 9 qualifications to be exempt from unemployment insurance. And it must meet all six qualifications to be exempt from the state’s wage and hour laws.

The bill would make the app-based rideshare and delivery companies automatically exempt from all three areas of employment law. 

They could lose the exemption only if they flunked all four parts of a new four-part test — by prescribing when drivers must be logged in; terminating a driver for turning down an assignment; restricting drivers from working for other app-based companies; and restricting drivers from any other lawful job or business.

“This is a dangerous bill for working people,” Stephanie Bloomingdale, president of the Wisconsin AFL-CIO, said Tuesday.

“It is a bill that will carve out our existing tests to determine unemployment, workers’ comp, wage and hour [standards] with a very simplistic four-part test that would forever remove drivers’ ability to access those kind of benefits that we fought for for decades,” Bloomingdale said in an interview.

“They could offer benefits without taking away these tests,” she added. “And what they’re really after is taking away these tests.

Although Bradley described the bill as giving Wisconsin gig drivers “access to benefits like health care, dental and retirement savings,” critics say that those kinds of benefits are unlikely to accrue under the system the law describes. 

In Pennsylvania, DoorDash has established a trial benefits program without a law in place there. A report commissioned for the program found that participants on average were able to save about $400 over the course of a year.

“It’s just a savings account with a very meager contribution from the companies,” said Laura Padin, director of Work Structures at the National Employment Law Project (NELP), who sent a letter to Evers urging him to veto the bill. “Real employment-based benefits are worth so much more than that.”

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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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