Legislature(2025 - 2026)BELTZ 105 (TSBldg)
04/30/2025 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB62 | |
| SB134 | |
| SB35 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 62 | TELECONFERENCED | |
| + | SB 134 | TELECONFERENCED | |
| + | SB 35 | TELECONFERENCED | |
SB 35-DELIVERY NETWORK COMPANIES
2:12:39 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 35 "An Act relating to
transportation network and delivery network companies."
2:13:20 PM
SAVAYA BIEBER, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, presented the summary and sectional
analysis for SB 35. She read the following:
[Original punctuation provided.]
SB 35 amends statutes related to workers compensation.
This will align individuals who provide delivery
services through delivery network companies with
individuals who provide services through
Transportation Network Companies.
The legislation will define these workers as
independent contractors provided they meet statutory
criteria.
Currently, delivery network companies are not defined
in statute, which has led to confusion and litigation
across the country, threatening these services that
customers value and depend on.
Services provided by delivery network companies can
include food, grocery, and prescription deliveries.
Roughly 90 percent of digital network drivers work
less than 10 hours per week.
These drivers usually provide delivery services to
supplement their income, so they can work their full-
time job, or go to school during the day, et cetera.
Most drivers prefer to remain working as independent
contractors so they can have the ability to work as
much or as little as they want.
2:14:34 PM
MS. BIEBER read the sectional analysis for SB 35:
[Original punctuation provided.]
Version A Sectional Analysis
Section 1: Amends AS 23.30.230(a) by adding a delivery
network company courier that provides delivery
services or is logged onto the digital network of a
delivery network company under AS 28.23.080 to the
list of individuals who are not covered by the Alaska
Workers' Compensation Act.
Section 2: Amends AS 28.23.080(a) to establish that
delivery network companies are not an employer of
transportation network drivers or delivery network
couriers under AS 23.10.699, AS 23.20.520, or AS
23.30.395. It further clarifies that an independent
contractor for all purposes is not an employee of the
company if the company does not propose specific
working hours, does not impose restrictions on the
ability of the driver to use the digital network of
other companies, does not restrict a driver from
engaging in any other occupation, or if the company
enters into a written agreement with the driver or
courier stating that the driver is an independent
contractor for the company.
2:15:19 PM
MS. BIEBER continued the sectional analysis for SB 35:
Section 3: Amends AS 28.23.180(1) by adding to the
definition of "digital network" to include use by
delivery network companies to facilitate offers for
delivery services
Section 4: Adds definitions to AS 28.23.180, to define
"company", "delivery network company", "delivery
network company courier" or "courier", "delivery
services", and "offer".
2:15:47 PM
SENATOR GRAY-JACKSON requested clarification that SB 35 would
not reclassify drivers as employees.
2:16:05 PM
MS. BIEBER answered yes.
2:16:11 PM
SENATOR GRAY-JACKSON asked how DoorDash drivers are classified.
2:16:20 PM
MS. BIEBER replied that DoorDash drivers are not defined in
statute.
2:16:35 PM
CHAIR BJORKMAN announced invited testimony on SB 35.
2:16:46 PM
JOHN FINLEY, Public Policy Member, Uber Eats, San Francisco,
California, testified by invitation on SB 35 as follows:
[Original punctuation provided.]
SB 35 updates the current law to affirm that app-based
delivery workers are independent contractors just
like TNC driversensuring consistency and protecting
the independence of our workforce.
2:17:07 PM
MR. FINLEY continued his testimony on SB 35:
The absence of clear statutory guidance creates legal
uncertainty, which could impact the app-based delivery
services that many Alaskans depend on.
Since Uber Eats launched in Anchorage in June 2020, it
has helped drive local economic growth, empower small
businesses, and make life a little easier for
community members by making food and everyday
essentials more accessible.
Whether it's a sandwich from your favorite
neighborhood deli, groceries to restock the fridge for
the week, everyday essentials like shampoo and diapers
or medical prescriptions delivered through the help of
our partners our platform helps deliver what Alaskans
need, when they need it to make life a little easier
for everyone.
We've also made it possible for lower-income
households, seniors, and people with disabilities to
use their food benefits to order groceries and get
them delivered. More than 90 percent of Americans have
access to Uber Eats, helping more people access fresh,
healthy groceries.
We help local businesses reach new customers, compete,
and grow without taking on big overhead costs.
According to our most recent Merchant Impact Report,
85 percent of restaurants say Uber Eats provides
opportunities for delivery that they wouldn't have
been able to support without it.
In 2023 alone, our platform powered billions of
dollars in orders, directly fueling local economies
and driving growth for small and minority-owned
businesses. Post-pandemic, delivery remains a critical
part of how people live, especially for geographically
mobile professionals who incorporate delivery services
into their lifestyle.
2:18:39 PM
MR. FINLEY continued his testimony on SB 35:
We ask you to protect and support the continuance of
the independent, flexible work model that has
benefited Alaskans.whether you're one of the More
than 15,000 Alaskan couriers, restaurants, or
customers utilize Uber Eats monthly. We ask for your
support for economic opportunities and innovation in
Alaska.
SB35 is necessary to keep Alaska's laws on pace with
the evolving world of work and continue to enable the
benefits Uber Eats brings to Alaskans every day.
2:19:31 PM
JESSICA LYNAM, Government Affairs Manager, Instacart, San
Francisco, California, testified by invitation on SB 35 and read
the following testimony:
[Original punctuation provided.]
On behalf of Instacart, I am writing to express our
support for Senate Bill 35, which would preserve
access to the independence and flexibility that
shoppers on the Instacart platform and other app-based
delivery workers consistently say they want and need,
and that rideshare drivers are already provided within
the State of Alaska.
Instacart is the leading grocery technology company in
North America, and we are proud to offer access to
flexible earning opportunities for the more than 1,600
Alaskans. Shoppers the individuals who pick, pack,
and deliver orders are often caretakers, parents,
students, or retirees seeking alternatives to
traditional employment or ways to supplement other
income. In fact, over 80 percent of shoppers say they
choose to shop on Instacart because of the
independence it provides. Nationally, the vast
majority of people who earn through our platform
including in Alaska shop less than 10 hours a week
on average1. They have the freedom to choose when,
where, and for how long they work, without any set
schedule, minimum commitment, or obligation.
2:20:48 PM
MS. LYNAM continued her testimony on SB 35:
In Alaska, Instacart partners with more than 25 retail
banners in more than 130 stores, with almost half of
those locations accepting EBT SNAP. By supporting
these retailers, Instacart has helped add over 100
brick-and-mortar grocery jobs from cashiers to store
managers across Alaska and approximately $5.1
million in additional revenue for Alaska's grocers2.
Moreover, Instacart is happy to serve tens of
thousands across the Frontier state.
Senate Bill 35 meets the needs of a modern and
independent workforce by clarifying that individuals
delivering essential goods on app-based platforms are
properly classified as independent contractors,
provided they meet the same specific criteria applied
to rideshare drivers. This workforce enjoys
unprecedented flexibility, and many may choose to
operate on multiple platforms across delivery and
rideshare. This clarity will preserve parity for these
workers whether they are driving on a rideshare
platform or delivering food, prescriptions or other
essential goods and put an end to needless
uncertainty, which can undermine the flexibility and
freedom that shoppers want and deserve.
I respectfully urge the Senate State Affairs committee
to support Senate Bill 35. By doing so, we can ensure
a fair and equitable environment for the growing app-
based workforce across Alaska.
2:22:13 PM
SENATOR GRAY-JACKSON asked how Instacart drivers are
compensated, besides receiving tips.
2:22:38 PM
MS. LYNAM replied that Instacart shoppers are paid based on the
size of the batch they select, with compensation varying by the
number of items. She said the driver receives 100 percent of
their tips.
2:23:11 PM
SENATOR GRAY-JACKSON asked for more details on how drivers get
paid.
2:23:20 PM
MS. LYNAM replied that she would provide a written document
conveying, on how drivers get paid.
2:23:37 PM
SENATOR GRAY-JACKSON asked for an example of how Instacart
disperses compensation to drivers.
2:23:58 PM
MR. FINLEY replied that couriers on platforms like Uber and
similar delivery services can choose when to work by accepting
delivery offers. When a customer places an order, the driver
receives a notification to pick up and deliver it. After
completing the delivery, the courier earns both the customer's
tip and a payment from the company. That company payment varies
for each order depending on several factors, including the
distance traveled, the type of order, and other delivery
conditions. In this way, drivers' total income combines company
provided compensation with direct tips from customers.
2:24:55 PM
SENATOR GRAY-JACKSON requested to see a more detailed
explanation of how a driver is paid.
2:25:16 PM
SENATOR DUNBAR asked what percentage of drivers work 40 hours or
more in a week.
2:25:44 PM
MS. LYNAM replied that currently Instacart drivers work an
average of 10 hours per week. She added that she will provide
data on Alaska drivers that work 40 hours per week or more.
2:25:58 PM
SENATOR DUNBAR asked for written data on the number of drivers
that work 40 hours or more and are on SNAP benefits or Medicaid.
2:26:51 PM
ANNA POWELL, Senior Manager, Government Relations, DoorDash,
Seattle, Washington, testified by invitation on SB 35 and read
the following testimony:
[Original punctuation provided.]
My name is Anna Powell and I am the Senior Manager of
Government Relations for DoorDash in the Northwest. We
are a technology company that empowers the local
economy by connecting consumers with their favorite
local businesses. In this state alone, we partner with
more than 700 merchants and more than 14,000 couriers
or, as we call them, "Dashers" who chose to earn
supplemental income by delivering food, groceries, and
other goods throughout their communities. DoorDash
stands with the Dasher community who overwhelmingly
prefer to remain independent contractors and offers
the following comments in support of SB 35.
2:27:42 PM
MS. POWELL continued her testimony of SB 35:
Dashers and the Importance of Independence and
Flexibility
Alaska Dashers value the independence and flexibility
that dashing provides. A Dasher never needs to commit
to a schedule to be online, is free to decline any
offer for work they are sent, and can leave the
platform for weeks or months at a time and come back
whenever a new need arises.
Time and time again, Dashers tell us that the top
motivation for using platforms like DoorDash is the
ability to create their own schedule and work as much
or as little as they want. Why? Because most Dashers
do relatively little work on the platform: in 2023, on
average, Dashers in Alaska only spent five hours per
week on delivery, and almost 90 percent delivered less
than 10 hours per week. The vast majority have other
primary sources of income or responsibilities and only
use the platform for supplemental work. In a survey
last year, 82 percent of Dasher respondents say they
have a full-or part-time job, are self-employed,
students, stay-at-home caregivers or retired.
SB 35 Protects App-Based Delivery Worker Independence
The flexibility and independence that Dashers highly
value is incompatible with traditional employment.
That's why in a survey last year, more than 90 percent
of Dasher respondents said they preferred to remain
independent contractors.
2:29:08 PM
MS. POWELL continued her testimony of SB 35:
SB 35 would protect the independence of Dashers and
other app-based delivery workers. Many existing worker
classification standards were not created with app-
based work and workers in mind. SB 35 would establish
a classification test for app-based delivery workers
that recognizes the unique nature of this work. This
standard is already used in Alaska for rideshare
drivers and is similar to standards for app-based
workers that have been adopted in numerous states
including Arizona, California, Florida, Indiana, Iowa,
Kentucky, Tennessee, and Utah.
DoorDash strongly supports SB 35 that would protect
the flexibility this type of work provides to the
thousands of Alaskan Dashers who choose it. Thank you
for your time and consideration and please do not
hesitate to reach out with any questions.
MS. POWELL added that DoorDash drivers (Dashers) work about 4
hours a week and earn an average of $27 an hour while driving.
2:30:19 PM
SENATOR GRAY-JACKSON requested clarification on how many hours a
week DoorDash drivers work and their average pay per hour.
2:30:34 PM
MS. POWELL answered that in Alaska, Dashers averaged four hours
of delivery work per week in the fourth quarter of 2024, with 88
percent working fewer than 10 hours. She said Dashers earned an
average of $27 per hour.
2:31:09 PM
SENATOR DUNBAR asked whether the $27 per hour is gross or net
pay.
2:31:21 PM
MS. POWELL answered the $27 per hour is gross pay with tips.
2:31:24 PM
SENATOR DUNBAR what percentage of the additional revenue
generated by "door dash" remains in Alaska, and recalled that
during the pandemic, many Anchorage restaurants struggled
because delivery services like DoorDash absorbed much of the
revenue, leaving restaurants unable to maintain their own
delivery staff. He asked what percentage of the delivery fees
remained in Alaska and how the fee structure contributed to the
financial strain that led some businesses to seek additional
CARES Act support.
2:33:00 PM
MS. POWELL replied that since 2020, DoorDash has restructured
its merchant fee system, offering at least three service
contract levels with varying benefits such as lower delivery
fees and increased advertising. She offered to share a fact
sheet showing $130 million in 2024 in Alaska and partnerships
with over 700 restaurants.
2:34:14 PM
SENATOR DUNBAR stated that many small Alaska restaurants cannot
afford to develop or maintain their own delivery apps. He asked
what percentage of deliveries in the state go through DoorDash,
what is their market share, and if local businesses can offer
independent delivery services.
2:35:19 PM
MS. POWELL replied that DoorDash has top competitors in the food
delivery service, namely, Instacart and Uber.
2:35:43 PM
SENATOR DUNBAR asked what percentage of the market share for
deliveries does DoorDash control and are there small businesses
in Alaska that compete with DoorDash delivery.
2:36:03 PM
MS. POWELL answered that she is not aware of any local delivery
operators in Alaska and does not know the market share of
existing competitors. She offered to investigate and provide
data.
2:36:39 PM
CHAIR BJORKMAN stated that many people are still adjusting to
the culture around delivery network companies and said SB 35
focuses on workers' compensation coverage for delivery workers.
He requested verbal and written comments to the committee on the
questions he asked. He asked what benefits are provided to
workers in Alaska who are injured on the job and unable to
continue working.
2:37:53 PM
MS. POWELL replied that DoorDash provides occupational accident
insurance for Dashers injured while delivering, offering up to
$1 million in medical and disability benefits automatically,
with no enrollment, deductibles, copays, or premiums required.
2:38:37 PM
MS. LYNAM replied that Instacart provides $1 million in
occupational incident insurance at no cost, automatically
covering shoppers while they are actively working on a batch.
CHAIR BJORKMAN asked whether there is wage replacement if a
worker is injured or misses work.
MS. LYNAM replied that the policy covers full-service shoppers
for medical expenses, disability, and death, and noted there is
some wage replacement coverage, and will provide additional
information to the committee.
2:39:47 PM
MR. FINLEY replied that Uber Eats doesn't have an occupational
accident insurance policy in Alaska.
2:40:05 PM
CHAIR BJORKMAN asked what coverage is available to protect
drivers if they are involved in a car accident while working,
including damage to their vehicle, others, or property.
2:40:45 PM
MR. FINLEY replied that aligning delivery drivers' status with
Transportation Network Company (TNC) drivers is important
because rideshare drivers in Alaska have comprehensive and
collision coverage for accidents they cause or experience,
protections that currently do not exist for delivery drivers. He
said the committee needs to pass SB 35 to formalize similar
coverage for delivery drivers.
2:41:50 PM
CHAIR BJORKMAN asked why Alaska law would need to change for
Uber Eats to provide insurance coverage for food delivery
drivers.
2:42:06 PM
MR. FINLEY answered that while rideshare drivers have insurance
coverage when carrying passengers, delivery drivers do not have
equivalent coverage when making deliveries. Aligning their
independent contractor status is important to ensure similar
protection.
2:42:54 PM
CHAIR BJORKMAN asked what coverage is available to protect
drivers if they are involved in a car accident while working,
including damage to their vehicle, others, or property.
2:43:06 PM
MS. LYNAM replied that occupational injury insurance covers the
worker's personal injuries, while any vehicle damage would be
covered under the driver's or shopper's personal auto insurance.
2:43:38 PM
MS. POWELL replied that DoorDash provides $1 million in auto
liability insurance for Dashers who cause an accident while
delivering, with coverage automatic and at no cost to the
driver.
2:44:11 PM
CHAIR BJORKMAN requested written responses to the questions that
were answered verbally during the hearing.
2:44:27 PM
SENATOR DUNBAR asked to direct his question to Director Chuck
Collins.
2:45:00 PM
SENATOR DUNBAR asked for an explanation of the practical
differences between occupational accident insurance and workers'
compensation, specifically how an injured worker's experience
would differ under each.
2:45:22 PM
CHARLES COLLINS, Director, Workers Compensation Division,
Department of Labor and Workforce Development (DOLWD), Juneau,
Alaska, answered questions on SB 35. He answered that the key
differences are that workers' compensation is no-faultcovering
injuries regardless of who is at faultand has no coverage
limits, unlike typical disability or occupational accident
insurance, which may have caps.
2:46:26 PM
SENATOR DUNBAR asked how delivery drivers in Alaska who work 40,
50, or 60 hours per week are currently classified and treated.
2:47:01 PM
MR. COLLINS replied that several delivery network companies have
temporarily provided workers' compensation coverage through
stipulations until a law clarifying their status is passed.
These agreements are nearing expiration, making it urgent to
establish legal direction, though the companies have been
cooperative in ensuring their contractors are protected.
2:48:24 PM
SENATOR DUNBAR asked what the current policies or agreements
with these companies specify.
2:48:34 PM
MR. COLLINS replied that companies that purchased workers'
compensation obtained standard coverage, while one agreement
simply paused enforcement, allowing time for legislation to
clarify that couriers transporting goods could be covered as
independent contractors.
2:49:25 PM
SENATOR DUNBAR asked whether the current agreements require
companies to purchase workers' compensation insurance under the
agreement rather than by law, and whether this is different from
occupational accident insurance. He also asked whether passing
this law would result in any employees in Alaska losing their
workers' compensation insurance.
2:49:49 PM
MR. COLLINS answered that for companies recognizing drivers as
employees, workers' compensation policies are annual and could
be canceled if the law changes. With SB 35, drivers would be
classified as independent contractors under Alaska law, who are
not required to have workers' compensation and can choose
whether to be covered.
2:51:15 PM
SENATOR DUNBAR noted that a key difference between workers'
compensation and occupational accident insurance is that
workers' compensation is no-fault, meaning employees are
compensated for on-the-job injuries regardless of how they
occur. He asked how the occupational accident insurance process
works in practicewhether workers must file their own claims,
how often claims are denied, and whether the company or the
insurer handles those claims.
2:52:16 PM
MR. FINLEY replied that Alaska Uber eats does not have
occupational accident insurance and wont be able to answer the
question.
2:52:37 PM
MS. LYNAM replied that for Instacart, shoppers can file claims
directly through the app. She said the company reports a low
number of claims and will provide Alaska-specific data.
2:53:12 PM
MS. POWELL stated her belief that drivers can file a claim but
would follow up with committee.
2:53:29 PM
SENATOR DUNBAR stated that he wants written information on the
percentage of filed claims that are paid out, not the share of
workers who file claims. He also asked whether companies screen
or block claims before submission and how burdensome the claims
process is for workers, noting that workers' compensation is
generally a simpler, no-fault system.
2:55:00 PM
SENATOR GRAY-JACKSON asked for confirmation that Instacart and
DoorDash offer occupational injury insurance.
CHAIR BJORKMAN indicated yes by nodding in the affirmative.
SENATOR GRAY-JACKSON asked for confirmation that Uber Eats is
looking into getting occupation injury insurance.
CHAIR BJORKMAN answered that's what he heard.
SENATOR GRAY-JACKSON asked Mr. Finley how soon occupational
injury insurance would become available for Uber Eats drivers
working in Alaska.
2:55:32 PM
MR. FINLEY replied that the company is actively exploring the
option for Alaska.
2:56:07 PM
CHAIR BJORKMAN said he recognizes the challenges SB 35 faces and
wants to ensure companies like Uber Eats, Instacart, and
DoorDash can continue operating in Alaska while workers feel
adequately protected. He emphasized the need to balance worker
freedom and protection, find common ground, and reach a
resolution that allows Alaskans to keep benefiting from these
services.
2:58:29 PM
[CHAIR BJORKMAN held SB 35 in committee.]