MONTGOMERY, Alabama (WIAT) — Whether as drivers or food delivery workers, app-based workers earn wages like other working Alabama residents. However, lawmakers say these employees do not receive the same benefits as other workers in the state.
Freelancers aren’t entitled to retirement benefits or paid vacation under federal law. If they do, it can be more of a hindrance than a help. This problem also applies to app-based employees of companies like Lyft, Shipt and Uber.
State Rep. Neil Rafferty (D-Birmingham) Rafferty, co-chair of the legislature’s Portable Benefits Task Force, says he knows many people who rely on app-based work for income.
“The financial security of Alabama families is a bipartisan issue. I don’t think this is an issue that can be decided for one party or the other,” Rafferty said. “I think both sides of the aisle see that this is a growing part of the economy that we need to address.”
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State Sen. Arthur Orr (R-Decatur) is one of those people from the other side of the aisle. He says lawmakers on the task force are working with advocates and app-based staff.
“We would like to establish a mechanism whereby the companies that contract with these individuals can offer some level of benefit,” Orr said.
He explained that this has become a problem for some major brands.
“For Shipt, the Birmingham market is a big problem nationwide. How can we solve that problem?” Orr asked. “So we’re excited about the work ahead because it’s going to help over 80,000 people here in Alabama.”
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