Transparency and Protection for App-Based Workers: 25% Take Rate Cap.
This Act mandates radical transparency for digital labor platforms regarding how algorithms determine worker pay, assignments, and disciplinary actions. It establishes a 25% cap on the platform's commission (take rate) for on-demand transportation services, aiming to increase driver earnings. Furthermore, it grants workers the right to detailed pay statements and invalidates mandatory pre-dispute arbitration agreements, making it easier for workers to seek justice in court.
Key points
Caps the platform commission (take rate) at 25% for on-demand transportation services, ensuring a larger share of the fare goes to the app-based worker.
Requires platforms to disclose detailed information on how electronic monitoring and automated decision systems (algorithms) are used to set pay, assign work, and make adverse decisions.
Invalidates pre-dispute arbitration agreements and joint-action waivers, allowing app-based workers to pursue class action lawsuits.
Prohibits platforms from collecting worker data outside of "time worked" and bans the use of data to infer sensitive personal characteristics like union sympathy or political opinions.
Introduced
Additional Information
Print number: 119_HR_6646
Sponsor: Rep. Jayapal, Pramila [D-WA-7]
Process start date: 2025-12-11