A05606
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
967
Session of
2023
INTRODUCED BY AUMENT, BARTOLOTTA AND VOGEL, NOVEMBER 21, 2023
REFERRED TO BANKING AND INSURANCE, NOVEMBER 21, 2023
AN ACT
Establishing portable benefits and protections for app-based
workers.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Short title.
Section 102. Findings and declarations.
Section 103. Definitions.
Chapter 3. Portable Benefits for App-Based Workers
Section 301. Contributions.
Section 302. Portable benefit account distributions.
Section 303. Occupational accident insurance.
Chapter 5. Miscellaneous Provisions
Section 501. App-based worker status.
Section 502. Severability.
Section 503. Statewide uniformity.
Section 504. Effective date.
Establishing portable benefits and protections for app-based
workers.
TABLE OF CONTENTS
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Chapter 1. Preliminary Provisions
Section 101. Short title.
Section 102. Findings and declarations.
Section 103. Definitions.
Chapter 3. Portable Benefits for App-Based Workers
Section 301. Contributions.
Section 302. Portable benefit account distributions.
Chapter 5. Miscellaneous Provisions
Section 501. App-based worker status.
Section 502. Severability.
Section 503. Statewide uniformity.
Section 504. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
CHAPTER 1
PRELIMINARY PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the App-Based
Workers Benefits and Protections Act.
Section 102. Findings and declarations.
The General Assembly finds and declares as follows:
(1) App-based workers who are drivers or couriers are
providing essential services to their communities.
(2) App-based workers who are drivers or couriers retain
full control over where, when and how they perform app-based
services or work and are therefore classified as independent
contractors.
(3) Independent contractors may not be entitled to some
of the protections and benefits available to employees. To
protect all of our Pennsylvania workers:
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(i) A portable benefits framework for app-based
workers should be established to enable the provision of
income replacement, health and wellness benefits and
other benefits to eligible workers.
(ii) A separate occupational accident insurance
requirement for network companies to purchase should be
established.
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Allocation date." The date following the last day of a
quarter on which a network company makes a quarterly deposit
into a portable benefit account.
"App-based worker." An individual:
(1) who is a delivery network company courier or
transportation network company driver providing services
within this Commonwealth through a network company's online-
enabled application or platform; and
(2) who is an independent contractor with respect to the
app-based worker's relationship with the network company
under section 501(b).
"Average weekly earnings." An app-based worker's total
earnings from all network companies during a 28-day period
divided by four.
"Customer." An individual or business entity.
"Delivery network company." A business entity that maintains
an online-enabled application or platform used to facilitate
delivery services within this Commonwealth.
"Delivery network company courier." An individual who
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provides delivery services through a delivery network company's
online-enabled application or platform.
"Delivery services." As follows:
(1) The fulfillment of a delivery request constituting
the pickup from a location of an item and the delivery of the
item to another location that is selected by the customer and
located within 50 miles of the pickup location, by walking or
using a passenger vehicle, bicycle, scooter, public
transportation or other similar means of transportation.
(2) The term shall include the selection, collection or
purchase of an item by a delivery network company courier if
the selection, collection or purchase is done in connection
with a delivery facilitated by the network company's
platform.
(3) The term does not include assistance with
residential moving services.
"Earnings." An amount, including an incentive and bonus,
remitted to an app-based worker. The term does not include:
(1) Toll fees, cleaning fees, airport fees or other
customer pass-throughs.
(2) An amount remitted which is not net of service fees
or similar fees charged to the app-based worker by the
network company.
(3) An amount remitted which includes tips or
gratuities.
"Earnings loss." A decrease of at least 50% in an app-based
worker's monthly earnings from the previous month that results
through no fault of the app-based worker.
"Eligibility date." The first day of a quarter, occurring
365 days after the effective date of this definition, during
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which an app-based worker qualifies as an eligible worker.
"Eligible worker." As follows:
(1) An app-based worker whose earnings from, or
facilitated by, a network company total at least $1,000
during a quarter.
(2) An app-based worker shall be considered an eligible
worker for the three quarters following the quarter of
eligibility under paragraph (1), notwithstanding the amount
the app-based worker earns during the three quarters.
"Institution." As defined in section 102(r) of the act of
November 30, 1965 (P.L.847, No.356), known as the Banking Code
of 1965.
"Interstate bank." As defined in section 102(hh) of the
Banking Code of 1965.
"Network company." A delivery network company or
transportation network company. The term does not include a
business entity that maintains an online-enabled application or
platform used to facilitate primarily nondelivery and
nonrideshare services within this Commonwealth, for which less
than 10% of the platform's business on an annual basis are for
delivery services or rideshare services.
"Online-enabled application or platform." An online-enabled
application, software, website or system offered or utilized by
a network company that enables a delivery network company
courier or transportation network company driver to provide
services.
"Permissible use." The use of funds for any of the following
reasons:
(1) An illness or accident.
(2) The birth or adoption of a child of the app-based
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worker.
(3) A Federal or Governor-declared state of emergency.
(4) An earnings loss.
(5) Transferring funds to an individual retirement
account.
(6) Covering expenses incurred for premiums for health
insurance coverage in the individual market.
"Portable benefit account." A financial account that meets
all of the following:
(1) From which amounts may be withdrawn for a
permissible use.
(2) The requirements of this chapter.
(3) Is administered by a portable benefit account
provider.
"Portable benefit account provider." An institution or
interstate bank, as defined in section 102 of the the Banking
Code of 1965, or another financial services entity which
demonstrates to the satisfaction of the Secretary of Banking and
Securities that the manner in which it will administer the
portable benefit account will be consistent with the portable
benefit account requirements under this chapter.
"Quarter." Each of the following time periods:
(1) January 1 through March 31.
(2) April 1 through June 30.
(3) July 1 through September 30.
(4) October 1 through December 31.
"Rideshare request." A request to provide a prearranged ride
as defined in 66 Pa.C.S. § 102 (relating to definitions) or 53
Pa.C.S. § 57A01 (relating to definitions).
"Transportation network company." An entity that meets the
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definition of a transportation network company under 66 Pa.C.S.
§ 102 or 53 Pa.C.S. § 57A01.
"Transportation network company driver." An individual who
meets the definition of a transportation network company driver
under 66 Pa.C.S. § 102 or 53 Pa.C.S. § 57A01.
CHAPTER 3
PORTABLE BENEFITS FOR
APP-BASED WORKERS
Section 301. Contributions.
(a) Network company contributions.--A network company shall,
by each allocation date, contribute to a portable benefit
account of an eligible worker an amount equal to 4% of an
eligible worker's earnings in the immediately preceding quarter
earned through that network company. The allocation date may not
be more than 30 days after the last day of the quarter.
(b) Initial contribution.--The first contribution to an
eligible worker's portable benefit account by a network company
under subsection (a) shall be made on the first allocation date
following the eligible worker's eligibility date with respect to
the network company.
(c) Worker contributions.--A network company shall do all of
the following:
(1) Allow an eligible worker to elect to contribute to
the eligible worker's portable benefit account.
(2) Deduct the amount elected under paragraph (1) by the
eligible worker from the eligible worker's earnings and
designate the amount for contribution to the portable benefit
account.
(3) Deposit deductions elected under paragraph (1) into
the eligible worker's portable benefit account on a quarterly
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basis, no later than seven days following the allocation date
for the quarter.
(d) Source of contributions.--Contributions made by a
network company or eligible worker under subsection (a) or (c)
shall be made in cash and, with respect to contributions made
under subsection (a), come from the network company's general
assets and not be deducted or drawn from an eligible worker's
earnings.
(e) Election.--An eligible worker shall elect a portable
benefit account and inform the network company at least 30 days
prior to the allocation date. If an eligible worker does not
inform the network company of the election at least 30 days
prior to the allocation date, contributions shall be made to the
default account. The following apply:
(1) Each network company shall ensure that the default
portable benefit account offered by the network company makes
available at least three individual retirement account
providers from which an eligible worker may select.
(2) A portable benefit account provider must demonstrate
to the satisfaction of the Secretary of Banking and
Securities that the manner in which the entity will
administer the portable benefit account shall be consistent
with the portable benefit account requirements under this
chapter.
(f) Transfer limit.--Notwithstanding any other provision of
this chapter, transfers made from a portable benefit account to
an individual retirement account offered under the portable
benefit account may not exceed the annual contribution limit
established by the Internal Revenue Service for contributions to
an individual retirement account for the tax year in which the
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transfer is made.
Section 302. Portable benefit account distributions.
(a) Distributions.--An eligible worker who has deposited
money into a portable benefit account may receive a distribution
of an amount if the portable benefit account provider determines
that the distribution is for a permissible use.
(b) Commingling prohibited.--Assets in a portable benefit
account shall not be commingled with other property except in a
common trust fund or common investment fund.
(c) Death of eligible worker.--For the death of an eligible
worker, the entire balance remaining in the portable benefit
account of the eligible worker shall be distributed in the form
of a direct trustee-to-trustee transfer to the individual
retirement account of the eligible worker under the portable
benefit account.
Section 303. Occupational accident insurance.
(a) Purchase of insurance.--Within 240 days of the effective
date of this subsection, each network company shall purchase
occupational accident insurance for app-based workers who
provide services through their network to cover medical expenses
and lost income resulting from injuries suffered while an app-
based worker is engaged on the network company's online-enabled
application or platform. The requirement to purchase
occupational accident insurance may be satisfied through the
purchase of blanket accident and sickness insurance, as
specified in section 621.3(a) of the act of May 17, 1921
(P.L.682, No.284), known as The Insurance Company Law of 1921,
covering groups of persons under a policy issued to network
companies under this section.
(b) Holder of insurance.--No later than 30 days after the
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commencement of a new policy year, each network company shall
file with the Insurance Commissioner a copy of the policy that
the network company has purchased for delivery network company
couriers and transportation network company drivers,
respectively. The following apply:
(1) The Insurance Commissioner shall be treated as a
certificate holder for purposes of receiving notice of
cancellation or nonrenewal of the policy.
(2) The policy shall be filed with the Insurance
Commissioner by the network company at least 30 days prior to
the effective date of the cancellation or nonrenewal of the
policy.
(c) Insurance necessary to operate business.--On or after
the date that is 240 days after the effective date of this
subsection, a network company may not operate in this
Commonwealth unless the network company carries, provides or
otherwise makes available occupational accident insurance.
(d) Minimum coverage requirements.--An occupational accident
insurance policy under subsection (a) must provide the following
regarding an app-based worker:
(1) Coverage for medical expenses incurred, for at least
$250,000 and 104 weeks following the injury.
(2) Continuous total disability payments and temporary
total disability payments in an amount equal to 66% of the
app-based worker's average weekly earnings from all network
companies as of the date of injury. Minimum and maximum
weekly payment amounts shall be determined in accordance with
sections 105.1 and 105.2 of the act of June 2, 1915 (P.L.736,
No.338), known as the Workers' Compensation Act, for up to
the first 104 weeks following the injury.
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(3) For the benefit of spouses, children or other
dependents of the app-based worker, accidental death
insurance in an amount equal to 66% of the app-based worker's
average weekly earnings from all network companies as of the
date of injury, with minimum and maximum weekly payment
amounts to be determined in accordance with sections 105.1
and 105.2 of the Workers' Compensation Act, multiplied by 104
weeks for injuries suffered by the app-based worker while the
app-based worker is engaged on the network company's online-
enabled application or platform that result in death.
(e) Terms of engagement.--For purposes of this section, an
app-based worker is engaged on a network company's platform from
the time period beginning when the app-based worker accepts a
rideshare request or delivery request to when the app-based
worker completes that rideshare request or delivery request as
recorded in the network company's online-enabled application or
platform.
(f) Multiple insurance policies.--If an accident is covered
by occupational accident insurance maintained by more than one
network company, the insurer of the network company against whom
a claim is filed is entitled to contribution for the pro rata
share of coverage attributable to one or more other network
companies up to the coverages and limits specified in this
section.
(g) Benefits.--Benefits provided to an app-based worker
under this section shall be considered amounts payable under a
worker's compensation law or disability benefit for the purpose
of determining amounts payable under insurance provided under 75
Pa.C.S. Ch. 17 Subch. C (relating to uninsured and underinsured
motorist coverage).
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(h) Conflict.--If there is a conflict between the provisions
of this act and the Workers' Compensation Act, the provisions of
this act shall control.
CHAPTER 5
MISCELLANEOUS PROVISIONS
Section 501. App-based worker status.
(a) Discrimination prohibited.--It shall be unlawful for a
network company, unless based upon a bona fide occupation
qualification or public or worker safety need, to refuse to
contract with, terminate the contract of or deactivate from the
network company's online-enabled application or platform any
app-based worker based upon age, race, creed, color, national
origin, sexual orientation, gender identity or expression,
military status, sex, disability, predisposing genetic
characteristics, familial status, marital status or status as a
victim of domestic violence.
(b) Independent contractor.--Notwithstanding any other
provision of law, including the act of June 2, 1915 (P.L.736,
No.338), known as the Workers' Compensation Act, the act of
December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as
the Unemployment Compensation Law, and the act of January 17,
1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968 and
any orders, regulations or opinions, an app-based worker shall
be deemed an independent contractor and not an employee or agent
with respect to the app-based worker's relationship with a
network company if the following conditions are met:
(1) The network company does not unilaterally prescribe
specific dates, times of day or a minimum number of hours
during which the app-based worker must be logged into the
network company's online-enabled application or platform.
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(2) The network company does not terminate the contract
of the app-based worker for not accepting a specific request
for services.
(3) The network company does not restrict the app-based
worker from performing services through other network
companies' platforms except while performing services through
the network company's own online-enabled application or
platform.
(4) The network company does not contractually restrict
the app-based worker from working in any other lawful
occupation or business.
Section 502. Severability.
(a) General rule.--Except as provided under subsection (b),
the provisions of this act are severable. If any provision of
this act or its application to any person or circumstance is
held invalid, the invalidity shall not affect other provisions
or applications of this act which can be given effect without
the invalid provision or application.
(b) Exception.--Notwithstanding subsection (a), if section
501 is held to be invalid by a decision of any court of
competent jurisdiction, the decision shall apply to the entirety
of the remaining provisions of this act, and no provision of
this act shall be deemed valid or given force of law.
Section 503. Statewide uniformity.
A provision of a local law or ordinance, or a rule or
regulation promulgated on or after the effective date of this
section, which governs the relationship between a network
company and an app-based worker shall, upon the effective date
of this section, be preempted.
Section 504. Effective date.
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This act shall take effect in 30 days.
CHAPTER 1
PRELIMINARY PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the App-Based
Workers Benefits and Protections Act.
Section 102. Findings and declarations.
The General Assembly finds and declares as follows:
(1) App-based workers who are drivers or couriers are
providing essential services to their communities.
(2) App-based workers who are drivers or couriers retain
full control over where, when and how they perform app-based
services or work and are therefore classified as independent
contractors.
(3) Independent contractors may not be entitled to some
of the protections and benefits available to employees. To
protect all of our Pennsylvania workers, a portable benefits
framework for app-based workers should be established to
enable the provision of income replacement, health and
wellness benefits and other benefits to eligible workers.
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"App-based worker." An individual:
(1) who is a delivery network company courier or
transportation network company driver providing services
within this Commonwealth through a network company's online-
enabled application or platform; and
(2) who is an independent contractor with respect to the
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app-based worker's relationship with the network company
under section 501(b).
"Customer." An individual or business entity.
"Delivery network company." A business entity that maintains
an online-enabled application or platform used to facilitate
delivery services within this Commonwealth.
"Delivery network company courier." An individual who
provides delivery services through a delivery network company's
online-enabled application or platform.
"Delivery services." As follows:
(1) The fulfillment of a delivery request constituting
the pickup from a location of an item and the delivery of the
item to another location that is selected by the customer and
located within 50 miles of the pickup location, by walking or
using a passenger vehicle, bicycle, scooter, public
transportation or other similar means of transportation.
(2) The term shall include the selection, collection or
purchase of an item by a delivery network company courier if
the selection, collection or purchase is done in connection
with a delivery facilitated by the network company's
platform.
(3) The term does not include assistance with
residential moving services.
"Earnings loss." A decrease of at least 50% in an app-based
worker's monthly gross earnings from the previous month that
results through no fault of the app-based worker.
"Electronic fund transfer." A payment of any method of
electronic funds transfer under 15 U.S.C. § 1693a(7) (relating
to definitions).
"Eligible worker." As follows:
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(1) An app-based worker whose gross earnings from, or
are facilitated by, a network company total at least $1,000
during a quarter.
(2) An app-based worker shall be considered an eligible
worker for the three quarters following a quarter with total
earnings which meet or exceed the limit under paragraph (1),
notwithstanding the amount the app-based worker earns during
the three quarters.
"Financial institution." Any of the following conducting
business in this Commonwealth:
(1) A depository institution as defined under 12 U.S.C.
§ 1813(c)(1) (relating to definitions).
(2) A Federal credit union or State credit union as
defined under 12 U.S.C. § 1752 (relating to definitions),
including an institution-affiliated party of a credit union
as defined under 12 U.S.C. § 1786(r) (relating to termination
of insured credit union status; cease and desist orders;
removal or suspension from office; procedure).
"Gross earnings." An amount, including incentives and
bonuses, remitted to an app-based worker. The term does not
include:
(1) Toll fees, cleaning fees, airport fees or other
customer pass-throughs.
(2) An amount remitted which is not net of service fees
or similar fees charged to the app-based worker by the
network company.
(3) An amount remitted which includes tips or
gratuities.
"Individual retirement account." A trust created under 26
U.S.C. Ch. 1 Subch. D Pt. I (relating to pension, profit-
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sharing, stock bonus plans, etc.) and any amendments, for the
exclusive benefit of an individual or the beneficiaries of the
individual, or both, which is in accord with 26 U.S.C. § 408(a)
or (h) (relating to individual retirement accounts) and
regulations of the Internal Revenue Service relating to section
408(a) or (h).
"Interstate bank." As defined in section 102(hh) of the act
of November 30, 1965 (P.L.847, No.356), known as the Banking
Code of 1965.
"Network company." A delivery network company or
transportation network company. The term does not include a
business entity that maintains an online-enabled application or
platform used to facilitate primarily nondelivery and
nonrideshare services within this Commonwealth, for which less
than 10% of the platform's business on an annual basis are for
delivery services or rideshare services.
"Online-enabled application or platform." An online-enabled
application, software, website or system offered or utilized by
a network company that enables a delivery network company
courier or transportation network company driver to provide
services.
"Permissible use." The use of money for any of the following
reasons:
(1) An illness or accident.
(2) The birth or adoption of a child of the app-based
worker.
(3) A Federal or Governor-declared state of emergency
that impacts the ability of a network company driver to work.
(4) An earnings loss.
(5) Transferring money to an individual retirement
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account or portable benefit account provided by another
network company.
(6) Covering expenses incurred for premiums for health
insurance coverage in the individual market.
"Portable benefit account." A financial account that meets
all of the following:
(1) From which amounts may be withdrawn for a
permissible use.
(2) The requirements of this chapter.
(3) Is administered by a portable benefit account
provider.
"Portable benefit account provider." A financial institution
administering the portable benefit account consistent with the
requirements under this chapter.
"Quarter." Each of the following time periods:
(1) January 1 through March 31.
(2) April 1 through June 30.
(3) July 1 through September 30.
(4) October 1 through December 31.
"Rideshare request." A request to provide a prearranged ride
as defined in 66 Pa.C.S. § 102 (relating to definitions) or 53
Pa.C.S. § 57A01 (relating to definitions).
"Transportation network company." An entity that meets the
definition of a transportation network company under 66 Pa.C.S.
§ 102 or 53 Pa.C.S. § 57A01.
"Transportation network company driver." An individual who
meets the definition of a transportation network company driver
under 66 Pa.C.S. § 102 or 53 Pa.C.S. § 57A01.
CHAPTER 3
PORTABLE BENEFITS FOR
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APP-BASED WORKERS
Section 301. Contributions.
(a) Network company contributions.--Except as provided under
subsection (d), a network company shall, by the 30th day of each
quarter following a quarter in which an app-based worker
qualified as an eligible worker, contribute to a portable
benefit account of an eligible worker an amount equal to 4% of
an eligible worker's gross earnings in the immediately preceding
quarter earned through the network company.
(b) Worker contributions.--A network company shall do all of
the following:
(1) Allow an eligible worker to elect and contribute a
percentage of the app-based worker's earnings, which may not
be less than 1% of the eligible worker's gross earnings with
the network company, to the eligible worker's portable
benefit account.
(2) Deduct any amount elected under paragraph (1) by the
eligible worker from the eligible worker's earnings and
designate the amount for contribution to the portable benefit
account.
(3) Deposit deductions elected under paragraph (1) into
the eligible worker's portable benefit account on a weekly
basis.
(c) Source of contributions.--Contributions made to a
portable benefit account under this section shall be made by an
electronic fund transfer. Contributions made under subsection
(a) shall come from the network company's general assets and not
be deducted or drawn from an eligible worker's earnings.
(d) Designation of a portable benefit account provider.--
Within 48 hours following the end of a quarter during which an
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app-based worker initially qualifies as an eligible worker, a
network company shall provide in writing to the eligible worker
notice of the worker's eligibility for contributions. The notice
shall explain:
(1) The eligible worker may choose a portable benefit
account provider with whom contributions from the network
company and the eligible worker are to be deposited by the
network company under this section. The notice shall specify
that the app-based worker:
(i) May select from a portable benefit account
provider from among one or more portable benefit account
providers that have been selected by the network company
to manage portable benefit accounts for eligible workers.
(ii) May designate an existing portable benefit
account belonging to the app-based worker to be used by
the network company giving notice under this section as
the portable benefit account upon becoming an eligible
worker. The notice shall specify information necessary to
designate an existing portable benefit account under this
paragraph.
(iii) May opt-out of opening a portable benefit
account at which point no account shall be opened and a
network company will not make any contributions under
subsection (a).
(2) The method by which an app-based worker must
communicate the designation of a portable benefit account
provider.
(3) A network company shall provide an eligible worker
with at least 15 days following receipt of the notice
required by this subsection to designate a portable benefit
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account provider or opt out of a portable benefit account.
Failure to communicate the designation of a portable benefit
account provider will result in a portable benefit account
for the app-based worker, upon becoming an eligible worker,
being set up through a default provider chosen by the network
company.
(4) The name and information of the default portable
benefit account provider that the network company intends to
select if an app-based worker for any reason does not
designate a portable benefit account provider.
(5) That disbursements from a portable benefit account
for any permissible use other than a transfer to an
individual retirement account or another portable benefit
account will result in the income no longer being exempted
from taxation under subsection (g).
(e) Change of designation.--A network company shall
establish a process by which an app-based worker who has opted
out of a portable benefit account may notify the network company
of the worker's desire to open a portable benefit account.
Following notification of the app-based worker's desire to open
a portable benefit account, if the app-based worker continues to
meet the requirements for an eligible worker, the network
company shall open a portable benefit account and begin
contributions under subsections (a) and (b) in the subsequent
quarter.
(f) Default portable benefit provider.--If a network company
establishes a portable benefit account for an eligible worker
through a default portable benefit provider, the network company
shall provide in writing to the eligible worker notice detailing
the establishment of the account and information on how to
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access funds for permissible uses under this act no later than
30 days following the establishment of the portable benefit
account.
(g) Exemption.--Contributions into a portable benefit
account shall be exempt from taxation under Article III of the
act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
of 1971, and may not be considered as taxable income for the
eligible worker unless disbursed from a portable benefit account
for a permissible use other than a transfer to an individual
retirement account or another portable benefit account belonging
to the eligible worker.
Section 302. Portable benefit account distributions.
(a) Distributions.--An eligible worker who has deposited
money into a portable benefit account may receive a distribution
for a permissible use.
(b) Commingling prohibited.--Assets in a portable benefit
account shall not be commingled with other accounts of an
eligible worker at a financial institution outside of a portable
benefit account unless authorized under this chapter.
(c) Death of eligible worker.--After the death of an
eligible worker, the entire balance remaining in the portable
benefit account of the eligible worker shall be distributed in
accordance with the relevant provisions of 20 Pa.C.S. (relating
to decedents, estates and fiduciaries).
CHAPTER 5
MISCELLANEOUS PROVISIONS
Section 501. App-based worker status.
(a) Discrimination prohibited.--It shall be unlawful for a
network company, unless based upon a bona fide occupational
qualification or public or worker safety need, to refuse to
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contract with, terminate the contract of or deactivate from the
network company's online-enabled application or platform any
app-based worker based on the characteristics identified in
section 5 of the act of October 27, 1955 (P.L.744, No.222),
known as the Pennsylvania Human Relations Act.
(b) Independent contractor.--Notwithstanding any other
provision of law, including the act of June 2, 1915 (P.L.736,
No.338), known as the Workers' Compensation Act, the act of
December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as
the Unemployment Compensation Law, and the act of January 17,
1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968, and
any orders, regulations or opinions, an app-based worker shall
be deemed an independent contractor and not an employee or agent
for all purposes with respect to the app-based worker's
relationship with a network company if the following conditions
are met:
(1) The network company does not unilaterally prescribe
specific dates, times of day or a minimum number of hours
during which the app-based worker must be logged into the
network company's online-enabled application or platform.
(2) The network company does not terminate the contract
of the app-based worker for not accepting a specific request
for services.
(3) The network company does not restrict the app-based
worker from performing services through other network
companies' platforms except while performing services through
the network company's own online-enabled application or
platform.
(4) The network company does not contractually restrict
the app-based worker from working in any other lawful
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occupation or business.
Section 502. Severability.
(a) General rule.--Except as provided under subsection (b),
the provisions of this act are severable. If any provision of
this act or its application to any person or circumstance is
held invalid, the invalidity shall not affect other provisions
or applications of this act which can be given effect without
the invalid provision or application.
(b) Exception.--Notwithstanding subsection (a), if section
501 is held to be invalid by a decision of any court of
competent jurisdiction, the decision shall apply to the entirety
of the remaining provisions of this act, and no provision of
this act shall be deemed valid or given force of law.
(c) Existing portable benefit accounts.--If section 501 is
held by any court to be invalid, the portable benefit account
and contributions made by an eligible worker and a network
company shall remain the property of the eligible worker
associated with the portable benefit account.
Section 503. Statewide uniformity.
A provision of a local law or ordinance, or a rule or
regulation promulgated on or after the effective date of this
section, which governs the relationship between a network
company and an app-based worker shall, upon the effective date
of this section, be preempted.
Section 504. Effective date.
This act shall take effect as follows:
(1) Chapter 3 shall take effect in 180 days.
(2) This section and the remainder of this act shall
take effect immediately.
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