Senate Bill 35 took center stage during the Alaska Legislature's Labor and Commerce Committee meeting on May 7, 2025, as lawmakers discussed crucial amendments to workers' compensation statutes. The bill aims to clarify the status of delivery network drivers, aligning them with transportation network drivers like those for Uber and Lyft, and defining them as independent contractors under specific criteria.

Currently, delivery network companies lack clear statutory definitions, leading to confusion and potential litigation. This ambiguity threatens the services that many Alaskans rely on for supplemental income. Approximately 90% of these drivers work less than 10 hours a week, often juggling delivery jobs alongside full-time employment or education.

Senator Greg Jackson emphasized the importance of this legislation, stating it would create a level playing field for drivers and eliminate inconsistencies in workers' compensation laws. The bill seeks to ensure that delivery drivers are treated as independent contractors, allowing them the flexibility to work as much or as little as they choose.

During the meeting, concerns were raised about insurance coverage for these drivers, particularly regarding auto and occupational insurance. Lawmakers acknowledged the need for comprehensive policies that would protect independent contractors in case of accidents or injuries while on the job. Senator Jackson highlighted the necessity for some form of injury protection for these workers, reinforcing the bill's intent to provide clarity and security in the gig economy.

As the committee moved forward, public testimony was opened but yielded no immediate responses. The discussion underscored the significance of Senate Bill 35 in shaping the future of gig work in Alaska, with lawmakers committed to crafting a solution that balances flexibility for workers with necessary protections. The anticipated outcomes of this legislation could reshape the landscape for delivery services, ensuring that drivers can continue to supplement their incomes without the fear of legal repercussions.