SB 24-075

Senate Bill 24-075, also known as the Transportation Network Company Transparency Act, requires ride-sharing companies like Uber and Lyft to be more transparent with their drivers about how payments are handled. The bill mandates that these companies provide clear policies on when they can deactivate or suspend a driver's account and ensure that any disputes related to such actions are resolved fairly within the state. Additionally, starting in 2025, the bill establishes an independent organization funded by ride-sharing companies to support drivers through deactivation processes and handle their appeals. The law aims to protect drivers' rights and improve transparency in how these companies operate. It was signed into law on June 5, 2024, and took effect on August 7, 2024.

Official Summary

The act requires a transportation network company (TNC) operating in the state to provide various disclosures to the TNC's drivers regarding payments that a consumer makes to the TNC and the amount that the TNC then pays to a driver. On or before May 1, 2025, a TNC is required to develop a driver deactivation and suspension policy describing the TNC's procedures for deactivating or suspending a driver from the TNC's digital platform and describing procedures for reconsideration of a TNC's decision to deactivate a driver. The TNC is required to disclose to drivers its driver deactivation and suspension policy, and, on and after June 1, 2025, the TNC is required to comply with certain deactivation and suspension requirements regarding its policy, including a prohibition against deactivating or suspending a driver unless the deactivation or suspension is consistent with the TNC's policy. The TNC is prohibited from including specified requirements in a contract between the TNC and a driver, including that a dispute related to deactivation reconsideration be adjudicated out of state or that the driver pay the TNC's costs or attorney fees related to the dispute. The act also requires a TNC to provide specified disclosures to its drivers and to consumers regarding payments that the consumer makes to the DNC and the amount that the DNC then pays to the driver. Beginning October 1, 2025, and every 3 years thereafter, the division of labor standards and statistics (division) in the department of labor and employment is required to certify a driver support organization (organization) to represent and support drivers through deactivation and suspension procedures. The division reviews the certified organization's budget, which budget must not exceed 7 cents per transportation task based on the previous year's total transportation tasks for all TNCs operating in the state. After the first certification period, the division may authorize an increased budget, not to exceed an increase above the rate of inflation for the previous 3-year certification period, to cover the certified organization's costs. Upon approval of the certified organization's budget, the division is required to direct each TNC to remit a quarterly share of the budget to the certified organization. Drivers may make voluntary, per-trip deductions on their earnings to help finance the certified organization. On a semiannual basis commencing August 1, 2026, a TNC is required to disclose to the division information regarding transportation tasks completed and any deactivations of drivers during the previous reporting period. The division may impose fines against a TNC for violations of the act occurring on and after June 1, 2025. A person aggrieved by a TNC's violation of the act may file a civil suit against the TNC seeking damages or injunctive relief. The director of the division may adopt rules to implement the act. For the 2024-25 state fiscal year, $164,741 is appropriated from the general fund to the department of labor and employment for use by the division to implement the act. APPROVED by Governor June 5, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)

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