Ridesharing Bill Stuck in Limbo in Nebraska

An ongoing debate in the Nebraska state legislature regarding the operational status of rideshare and food delivery app drivers has been going on. The state is debating a bill that would formally declare rideshare and food delivery app drivers as independent contractors. However, party lines are drawn quite clearly, with Republican leaders siding with companies, in favor of making drivers independent contractors, and Democrats siding with the drivers, not wanting this bill to pass. The bill was being filibustered as back and forth extended for quite some time. It has been advanced, but the fight back against it continues.

Drivers are already seen as independent contractors, but this bill formalizes that position.

As independent contractors, companies such as Uber, DoorDash, Lyft, and more, that rely on drivers would not have to allot drivers certain employee rights. This is because, should the bill be passed, by law, drivers would not be recognized as employees of the company, but rather individuals who contracted with the company. This means that drivers would not be subject to receive overtime pay; to receive benefits such as health insurance and vacation pay; and would not be able to unionize. This is how the companies currently operate; however, many drivers have been pushing back against this and making attempts to unionize, which ultimately got the companies working to formalize the method.

Because this is how companies already operate, some support the bill as it upholds the “status quo.”

This is the belief of one state senator, Bob Hallstrom. Hallstrom is the senator who specifically introduced the bill, known as Legislative Bill 229. He was asked by companies relying on rideshare and food delivery drivers to codify this and make it the legal structure. Hallstrom and his supporters have expressed that they believe the way the companies have operated thus far is fine and has no reason to adjust, hence why he wants to codify the bill.

Opponents argue that this action disenfranchises workers.

State Senator Dan Quick stated that the law could lead to bigger pay gaps based on location, which could lead to drivers in rural areas of Nebraska to be paid significantly less. This, he argues, inherently takes away the rights of the worker.

Other opponents argue that it is not the government’s place to rule on this matter.

State Sentaor Megan Hunt, who identifies as a nonpartisan progressive, states that it is “not the job of the government to set the status of employees in stone.” She further defined the bill as a sort of present from Nebraska state leaders to major corporations. Additionally, Hunt expressed how this could set a dangerous precedent of the government overstepping into worlds it should have key action in.

Nebraska is not the only state taking such action on this matter.

California had a similar bill on their state ballot in an election held in 2019. The bill passed, codify drivers as independent contractors; however, the bill included alternative benefits. The bill codified that drivers still had a guaranteed minimum wage, something that is absent on Nebraska’s bill. A similar battle happened in Massachusetts in which drivers were given a minimum wage and a small set of benefits. Many Nebraska leaders who oppose the bill have stated that they would reconsider their position if some alternatives that protected the drivers were put in place.