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SD 1561

An Act relative to delivery network companies

194th Legislature (2025-2026) Introduced by Will Brownsberger

Summary of SD 1561: An Act relative to delivery network companies OverviewSD 1561 is a proposed bill introduced on November 29, 2025 that aims to establish new regulations for deli

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Bill Summary · SD 1561

Summary of SD 1561: An Act relative to delivery network companies

Overview

SD 1561 is a proposed bill introduced on November 29, 2025 that aims to establish new regulations for delivery network companies (DNCs) operating in the state. The primary purpose of the bill is to address the classification and labor rights of delivery workers employed by these technology-based service platforms.

Key Provisions

  • Worker Classification: The bill would reclassify delivery workers for DNCs as employees rather than independent contractors. This would entitle them to minimum wage, overtime pay, and other labor protections.
  • Benefits and Compensation: DNCs would be required to provide their delivery workers with health insurance, paid sick leave, and other standard employee benefits.
  • Tip Transparency: The bill mandates that DNCs must disclose the full amount of tips received by each delivery worker, and prohibits companies from keeping any portion of those tips.
  • Fee Restrictions: It places limits on the fees that DNCs can charge restaurants and other businesses for their delivery services, capping them at 15% of the order total.
  • Data Reporting: DNCs would be required to regularly report data on their operations, workforce, and economic impacts to a newly created state oversight board.

Impact

The legislation is intended to improve working conditions and compensation for the thousands of gig economy delivery workers in the state. It challenges the longstanding practice of classifying these workers as independent contractors rather than employees.

The bill would likely increase operating costs for major DNCs like Uber Eats, GrubHub, and DoorDash, which may in turn be passed on to consumers through higher delivery fees. Restaurants may also face higher costs for using DNC delivery services.

The creation of a regulatory oversight board could give the state greater visibility and control over the DNC industry's labor practices and economic impacts. However, the bill may face legal challenges from DNC companies arguing it interferes with their business model.

Compiled from official sources — confirm details with the bill’s official record.

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