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HB 4743

TRANSPORT NETWORK LABOR

104th Regular Session Introduced by Diane Blair-Sherlock and 7 co-sponsors

The bill creates a state-regulated system allowing transportation network drivers to organize and bargain sector-wide with covered ride-hailing companies.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 4743

Summary of HB 4743 (104th Illinois General Assembly)

Transportation Network Labor Relations Act

This bill proposes a comprehensive framework to regulate labor relations within the Illinois transportation network (ride-hailing) sector. It creates a new statutory regime to allow transportation network drivers (TNDs) to organize, bargain, and obtain industry-wide protections, while establishing state supervision and specific enforcement mechanisms. The act aims to displace certain competition in favor of regulated sectoral bargaining and to provide a structured path for sector-wide agreements between transportation network companies (TNCs) and TND organizations.

1) Purpose and intent

  • Establishes a Transportation Network Driver Labor Relations Act to allow TNDs to self-organize, choose representatives, and bargain collectively on a sectoral basis.
  • Authorizes formation of multi-company associations among TNCs to participate in sectoral bargaining with TNDs.
  • Seeks to replace some aspects of market competition with regulatory governance of terms and conditions of work for TNDs.
  • Grants broad state supervision and antitrust exemptions for activities authorized by this Act, with the goal of promoting labor peace and public welfare.
  • Provides a framework for resolving disputes between TNCs and TNDs through the Illinois Department of Labor and the Illinois Labor Relations Board (ILRB).

2) Key provisions and changes

  • Section 3: Definitions

    • Clarifies terms such as active TND, TND organization, covered TNC, exclusive bargaining representative, sectoral agreement, and company union.
    • Defines what constitutes a transportation network company and TND services (excludes traditional taxicabs or street hail).
    • Establishes that TNCs’ related entities under common control may be treated as a single TNC for purposes of coverage.
    • Distinguishes employees for NLRA purposes from TNDs under this Act.

  • Section 4–6: Rights and Unfair practices

    • TNDs have the right to organize, join, and bargain collectively, free from interference by TNCs.
    • Prohibits TNCs from interfering with, restraining, or coercing TNDs in exercising rights; sets out specific unfair practices by TNCs and by TND organizations.
    • Right to bargain on mandatory subjects (e.g., compensation, benefits, deactivations dispute resolution).

  • Section 7–8: Enforcement, active TND determination, and data reporting

    • Requires annual and quarterly reporting by covered TNCs to identify active TNDs (drivers with meaningful ride activity) and to provide a portal-style data list (names, contact info, ride counts, etc.) to TND organizations and the Board.
    • Establishes procedures to determine which drivers are “active” (median-based threshold using data from all TNCs).

  • Section 9–10: Designation and certification of bargaining representatives

    • Creates a process for TNDs to designate a bargaining representative (TND organization) through cards/petitions, including electronic signatures.
    • Sets thresholds for recognition (e.g., designated by 10% of active TNDs) and potential elections (once at 10%, or at 30% to become exclusive representative).
    • Outlines procedures for elections, runoff elections if necessary, and the exclusive bargaining representative’s scope of authority.

  • Section 11: Administrative fees

    • Beginning when a TND organization is certified as exclusive representative, covered TNCs must pay a per-trip fee of 20 cents.
    • Fees fund education, enforcement, and sectoral agreement support; cannot be used for political contributions or lobbying.
    • Requires annual reporting by exclusive bargaining representatives on how fees are used.

  • Section 12: Bargaining, impasse resolution, and Department approval

    • After certification, mandatory bargaining on sectoral terms; TNCs may form an industry association for bargaining.
    • Sectoral agreements must address minimum subjects (compensation, benefits, deactivation processes, paid leave, safety, information disclosure, grievance/arbitration, etc.) and have a duration of 3–5 years.
    • Impasse procedures include mediation and potentially arbitration, with the arbitrator’s decision applying to all covered TNCs and the exclusive representative.
    • The Department must review and approve sectoral agreements, with a 60-day decision window after public comment, and may propose amendments.

  • Section 13: Compliance with other laws

    • States that various Illinois wage, leave, anti-discrimination, and other labor and benefits laws will be deemed satisfied for TNDs when performing services for covered TNCs, if applicable.

3) Who and what would be affected

  • Transportation network drivers (TNDs): Granted rights to organize, bargain, and participate in sectoral agreements; subject to data reporting and representation processes.
  • Transportation network companies (TNCs): Required to engage in good-faith bargaining with certified TND organizations; hold data-sharing obligations; potentially form or participate in industry associations for sectoral negotiations.
  • Illinois Department of Labor and Illinois Labor Relations Board: Expanded role in designation, certification, enforcement, and approval of sectoral agreements; enforcement of unfair practices; administration of fees and compliance.
  • Consumers: Potentially affected via per-trip “Labor Relations Administrative Fee” charged by TNCs to fund the program (20 cents per trip, adjustable for inflation after 12 months of certification).

4) Procedural and timeline aspects

  • Active TND determination: Within 90 days of enactment, quarterly thereafter; uses median-based thresholds to classify active drivers.
  • Designation process: 10% threshold triggers notice and data provision; 30% threshold can lead to exclusive representation or election.
  • Elections: If no majority through certification, elections occur within 60 days; runoff if necessary.
  • Sectoral agreement: Must address core topics; subjected to Department approval within 60 days after comments window.
  • Impasse and arbitration: Mediation first; if unresolved, arbitration within defined timelines (e.g., 90-day arbitrator determination).
  • Fees: Start upon certification; 20 cents per ride, adjusted for inflation annually after 12 months; annual reporting required by exclusive representative.

If you’d like, I can provide a side-by-side comparison with current Illinois labor law and typical NLRA dynamics, or a plain-language Q&A addressing common scenarios (e.g., what happens if a driver wants to switch representation).

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

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