New Bill Could Curb Exploitation of US Gig Workers

The gig economy runs on hidden rules. Every day, millions of workers in the United States log into apps like Uber, DoorDash, and Amazon Flex to earn a living, without knowing how much they’ll be paid, how jobs are assigned, or if they might be kicked off a platform and why.

A new bill in Congress could change that.

On July 24, Senators Brian Schatz and Chris Murphy introduced the Empowering App-Based Workers Act, a landmark proposal to bring much-needed transparency and fairness to gig work. If passed, it would require platform companies to disclose how they use algorithms to manage, pay, assign work, and suspend workers.

It would limit algorithmic wage-setting and outlines clear limits on the data companies can collect, including about immigration status, health, disability, and sexual orientation. It would also guarantee rideshare drivers at least 75 percent of each fare and prohibit companies from paying workers differently for the same job.

Ambitious reforms are urgently needed. Human Rights Watch has found that platform workers we surveyed in Texas earn just $5.12 an hour after expenses, about 70 percent below a living wage. Some make nothing at all. They receive no health insurance, paid leave, or unemployment protections. Many are laid off without notice, explanation, or recourse.

The US is one of the world’s largest gig economies. About 16 percent of Americans have worked for an app, disproportionally people of color. Because many companies wrongly classify platform workers as independent contractors, these workers are excluded from many of the labor protections guaranteed under both US law and international human rights law.

This bill would help workers access their rights. It would require companies to issue weekly pay statements and per-job receipts that show time worked, hourly pay, and how much of each fare the company keeps. It mandates public reporting to the Department of Labor, helping regulators and the public hold companies accountable.

Critically, the bill sets a federal floor, not a ceiling, meaning states and cities can pass stronger protections.

Transparency won’t fix everything. But it’s a critical first step toward accountability and less inequality. Lawmakers should support this bill and start protecting the workers powering the gig economy.