MADISON, Wis. (CBS 58) -- State lawmakers are proposing changes for drivers of popular food delivery and ride-share apps by giving them an option to access certain benefits.
Under the proposed bill, drivers who work for Uber, Lyft and DoorDash could access benefits while still working as independent contractors.
On Tuesday, lawmakers on the Assembly State Affairs Committee heard testimony from drivers and their support for the proposal.
"Right now, there are no contributions. There is nothing to help independent contractors," said Maliki Krieski, a DoorDash driver and mother from Ripon. "This would indeed mean all the gig-worker companies would work together to help benefit employees."
If passed, the bill would create a statewide benefits portal for food delivery and ride-share drivers to access. Companies like Uber, Lyft and DoorDash could then contribute 4% of the drivers' quarterly earnings to health care and retirement savings accounts. The driver may also allocate funds to the account.
However, companies are not required to contribute under the proposal. It's why labor groups, including the Wisconsin AFL-CIO, oppose the bill, because they say it doesn't guarantee job protections.
“The language in the bill says it may give portable benefits — it doesn’t guarantee them,” said Stephanie Bloomingdale, president of the Wisconsin AFL-CIO. “It doesn’t guarantee any of the benefits they are touting.”
The benefit accounts could be used to fund retirement savings, cover premiums for vision, dental, or health insurance, or provide income support during life events such as illness, injury, or the birth of a child, according to the bill sponsors.
Sen. Julian Bradley, who co-authored the proposal, said the measure would "remove the red tape" by allowing more than 100,000 delivery and ride-share drivers in Wisconsin to access benefits.
The bill also creates criteria to clarify that these app-based drivers are contractors and not employees.
Ride-share and delivery apps already classify their workers as independent contractors, but there are efforts across the county that have tried to recognize drivers as employees.