SB 23-098

Senate Bill 23-098, known as the Gig Work Transparency Act, requires companies like Uber and DoorDash to provide clear information to both their drivers and customers about how payments are handled. This includes disclosing details on consumer payments and driver earnings, as well as outlining fair procedures for terminating or rehiring drivers. If a company violates these rules, it can face fines and be required to rehire terminated drivers if the termination was unjustified. Since the bill has been signed into law, companies operating in Colorado must now comply with these transparency requirements.

Official Summary

The bill requires a delivery network company (DNC) or a transportation network company (TNC) operating in the state to provide various disclosures to their drivers and to consumers of the DNC or TNC regarding payments that a consumer makes to the DNC or TNC and the amount that the DNC or TNC then pays to a driver. The bill also requires transparency with regard to the procedures that govern a determination by a DNC or TNC to terminate a driver from, or rehire a driver on, the DNC's or TNC's digital platform and authorizes a driver who has been terminated to seek administrative review of the termination. The division of labor standards and statistics (division) in the department of labor and employment may impose fines against DNCs and TNCs for violations of the bill or require a DNC or TNC to rehire a wrongly terminated driver, and a consumer or driver aggrieved by a violation may file a civil suit against the DNC or TNC that committed the violation. The director of the division is required to adopt rules regarding the disclosures related to payments made to drivers and driver termination and rehire policies. (Note: This summary applies to this bill as introduced.)

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