Overregulation Threatens Colorado’s Gig Economy
As the 2024 legislative session kicks off in Colorado, lawmakers are once again pushing for increased regulation of companies that employ drivers for ride-hailing and food-delivery apps.
Last year's efforts to pass similar legislation failed, but proponents are determined to see these bills through to give drivers more rights the additional protections not usually associated with gig workers. However, critics argue that this excessive regulation will stifle innovation and harm the Colorado’s booming gig economy.
Last year's bill, which aimed to add transparency measures for drivers, was met with heavy opposition from tech companies and key lawmakers.
Now, two separate bills have been introduced to address the concerns raised by both delivery and ride-hailing companies.
HB24-1129 focuses on delivery companies like DoorDash and UberEats.
PRIME SPONSORS
SB24-075 targets ride-hailing companies such as Uber and Lyft.
PRIME SPONSORS
Both bills share similar language, requiring companies to disclose detailed information about fare distribution between drivers and the company. Additionally, delivery drivers would have access to their end destination before accepting a ride, a feature not currently provided by every delivery company.
The bills also mandate that companies report various metrics to the Colorado Department of Labor and Employment regarding completed transportation tasks and driver deactivations.
However, last year's deactivation language faced significant pushback from ride-hailing companies and sexual abuse advocacy organizations, arguing that it could force companies to reinstate dangerous drivers. To address these concerns, this year's bills include provisions that clearly outline the reasons for deactivation and allow drivers to request a reconsideration meeting with the company.
DoorDash has raised concerns about privacy violations, Lyft has expressed serious concerns about data sharing, and Uber has criticized the proposed legislation for requiring an unprecedented amount of commercial and customer data. These companies argue that the bills make unnecessary changes and hinder small businesses that rely on their services.
READ MORE:
COLORADO REGULATORS NOT TO BAN SALES OF GAS-POWERED LAWN AND GARDEN EQUIPMENT
RED TAPE STRAINS COLORADO BUSINESS COMMUNITY, HINDERING GROWTH AND EXPANSION
Representative Stephanie Vigil, who drives for one of the gig-apps. As one of the bill sponsors, called the companies' objections "disappointing and frustrating." She told the Denver Post the irony that these companies feel entitled to all the information needed to make decisions, which is the same transparency that drivers have been fighting for.
Critics argue that these bills represent unnecessary government intervention that will burden businesses and hinder the flexibility and independence that the gig economy provides. Overregulation could potentially drive companies out of Colorado or discourage them from expanding their services in the state.
Are you enjoying THE LOBBY? Our stories are only possible because of generous contributions from our readers. Please consider chipping in today. Thank you!