HR6646-119

What This Bill Does

The Empowering App-Based Workers Act regulates digital labor platforms that allocate, manage, or price work through apps, electronic monitoring tools, and automated decision systems. It defines app-based workers, adverse actions, covered digital labor platform providers, worker data, vendors, take rates, time worked, and related terms. Covered providers must give workers and applicants detailed notices about monitoring and automated decision systems, disclose data collected or used, explain compensation and work-assignment effects, and provide pay and work-assignment information. Transportation platforms may not charge more than a 25 percent take rate and must limit worker fees within that cap. Providers and vendors must preserve worker data for four years, restrict sales or transfers, and disclose data to workers or authorized agents. Workers may designate authorized agents to receive disclosures. Providers may not retaliate against workers for exercising rights, complaining, participating in proceedings, or assisting another worker. The Secretary of Labor can investigate, inspect records, question workers, issue public reports, conduct education, impose penalties, bring enforcement actions, and support private civil actions. The bill requires regulations within 180 days, limits some judicial review timing and venue, preserves stronger state and wage laws, invalidates certain arbitration and confidentiality waivers, protects scheduling flexibility, and includes severability.

Who Benefits and How

App-based workers benefit from notice about algorithmic management, pay disclosures, worker-data access, authorized-agent support, anti-retaliation protections, and enforceable remedies. Consumers benefit from more transparency around platform pricing and take rates for on-demand transportation. Authorized agents, worker organizations, and advocates benefit because they can receive disclosures and help workers review platform decisions. Labor Department staff benefit from explicit investigation, reporting, education, and enforcement powers. State labor agencies benefit because stronger state protections are preserved. Competing employers that follow wage and employment laws benefit if misclassification and opaque pay practices are constrained.

Who Bears the Burden and How

Covered digital labor platform providers must build disclosure systems, monitor take-rate compliance, preserve records for four years, respond to worker and agent data requests, avoid retaliation, handle complaints, and face Labor Department investigations, civil penalties, and private suits. Vendors must preserve and protect worker data used in monitoring or automated decision systems. Transportation platforms must comply with the 25 percent take-rate limit and fee restrictions. The Department of Labor must write regulations within 180 days, investigate platforms, issue public reports, conduct education, and enforce the Act. Courts must apply the bill limits on judicial review and contract waivers. Federal taxpayers fund enforcement administration.

Key Provisions

• Defines app-based work, adverse actions, automated decision systems, worker data, take rates, time worked, and covered platform providers.
• Requires detailed notices and pay disclosures about monitoring tools, automated decisions, compensation, work assignments, and data use.
• Limits on-demand transportation platform take rates to 25 percent and restricts worker fees.
• Requires providers and vendors to preserve worker data for four years and disclose data to workers or authorized agents.
• Protects app-based workers from retaliation for exercising rights, complaining, participating in proceedings, or assisting another worker.
• Authorizes Labor Department investigations, public reports, education, penalties, enforcement actions, and private civil actions.
• Requires regulations within 180 days, preserves stronger state and wage laws, limits arbitration and confidentiality waivers, protects flexibility, and provides severability.