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Congress·In Committee·7 months ago

Senate Bill Would Cap Ride-Hail Platforms at 25% Fare Cut, Require Algorithm Transparency for Gig Workers

Also known as: Empowering App-Based Workers Act

Legislative Progress

✓ Filed
Review
Senate
House
President

Impacts

Positive Impacts(3)
Gig Worker
Helps
Small Business Owner
Helps
Union Member
Helps

Key Points

  • Gig and app-based companies would have to explain how they track workers and use software to decide pay, assignments, and deactivations.
  • Workers would get clearer pay info, including an itemized receipt after each job and a weekly statement showing time worked, miles, tips, and the platform’s share.
  • Ride-hail platforms would be limited to keeping no more than 25% of the pre-tip fare, aiming to send a larger share of each trip’s price to drivers.
  • Platforms could not set different pay for similar tasks using personal data (like profiles or other individualized traits) unless they can justify it based on real cost differences.
  • Workers, consumers, and worker representatives could sue over violations, and the Labor Department could investigate and fine companies for breaking the rules.
Labor EmploymentConsumer ProtectionData PrivacyArtificial Intelligence

Milestones

2 milestones2 actions
Jul 28, 2025Senate

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Jul 28, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

Within 180 days after the bill becomes law

Labor Department writes and finalizes the main rulebook for how the disclosures and definitions work

The exact details (like how “time worked” is measured and the required formats) get locked in, which determines what workers will see in their pay statements and what platforms must report

After the Labor Department’s final rule takes effect (and for new systems, at least 96 hours before they start)

Platforms begin giving applicants the required monitoring/algorithm notice before they do their first job

New sign-ups would get clearer up-front warnings about tracking, pay-setting, and deactivation reasons before they start working

No later than the later of 30 days after the final rule takes effect or 180 days after the bill becomes law

Existing workers receive the first round of required monitoring/algorithm notices

Current workers would finally get a written explanation of what data is collected and how pay, job offers, and account actions can be decided

Related News

4 articles
The Washington Times·2 months ago

Lawmakers introduce bill to regulate app-based platforms' wage decisions for workers

House Democrats introduced the Empowering App-Based Workers Act to regulate digital labor platforms like Uber and Amazon. The bill mandates transparency in algorithmic wage-setting and requires ride-hail drivers to receive 75% of fares, while industry groups warn of anti-innovation impacts.

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Quartz·about 2 months ago

Gig workers are growing in number as hiring slows

As more Americans turn to gig work, federal lawmakers have introduced the Empowering App-Based Workers Act. The legislation aims to force platforms to explain their algorithms and guarantees that rideshare drivers receive at least 75% of each passenger fare.

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Maui Now·7 months ago

Schatz introduces legislation to help app-based workers

Senators Brian Schatz and Chris Murphy introduced the Empowering App-Based Workers Act to improve transparency in app operations. The bill requires disclosure of electronic monitoring systems and ensures rideshare workers receive at least 75 percent of the amount paid by consumers.

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Source Information

Document Type

Congressional Bill

Official Title

Empowering App-Based Workers Act

Bill NumberS 2488
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Health, Education, Labor, and Pensions.

Sponsor

Cosponsors

(3)
D: 3

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.