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Panel debates coverage for delivery drivers; sponsor seeks clearer workers'comp rules for gig economy
Summary
Senate Bill 35 would clarify the statutory status of delivery network company drivers and align them with transportation network company drivers as independent contractors while logged on to a digital dispatch network. The sponsor and industry witnesses said the change would reduce litigation and create parity with ride-hailing drivers; committee
The Senate Labor and Commerce Committee on Wednesday heard a recap of Senate Bill 35, a proposal to clarify the statutory status of delivery network company drivers under Alaska workers' compensation law and align them with transportation network company drivers when "logged on" to a digital network.
Conrad Jackson, staff to Senator Christine Bjorkman, said SB 35 "aligns individuals who provide delivery services through delivery network companies, with individuals who provide services for transportation network companies" and would treat those drivers as independent contractors provided they meet statutory criteria. Jackson said the current statutory language is unclear because delivery network companies were not widely present when the 2017 transportation network company statute was adopted.
Why it matters: The bill seeks to reduce litigation and statutory ambiguity about whether gig-economy drivers are employees for workers' compensation purposes. Supporters argue most drivers use the platforms as part-time supplemental income and prefer independent-contractor status to preserve scheduling flexibility. Industry invited testimony (including Uber) previously answered committee questions; John Finley from Uber was listed as available for questions and had submitted written answers to the committee.
Insurance and occupational-injury questions were a central part of the discussion. The sponsor acknowledged unresolved questions about when personal auto insurance applies and whether there should be an occupational-injury insurance instrument for delivery drivers. Senator Greg Jackson (committee member) said he intends to pursue an offline conversation about requiring delivery companies to provide occupational injury coverage and may offer an amendment to that effect.
Committee action: The committee closed public testimony (none was offered) and set SB 35 aside for further consideration. The sponsor said he wants to "get the policy right instead of just doing something to get it done" and will work with the Division of Insurance and stakeholders to explore options for insurance coverage and language.
What was not decided: No statutory language was adopted, and no decision was made about whether the bill will include a requirement for occupational-injury insurance or other insurance-related provisions. The committee did not vote on the bill.
