#493 | How a bill becomes a law (app based gig platforms)

Kentucky Delivery Network Company Driver Transparency & Protections Act

SECTION 1.

KRS Chapter [to be assigned] is amended to create a new section to read as follows:

As used in Sections 1 to 10 of this Act, unless the context requires otherwise:

1. "Delivery network company" or "DNC" means an entity that:
   (a) Uses a digital network to connect consumers with drivers to facilitate delivery services;
   (b) Collects payments from consumers for such delivery services; and
   (c) Compensates drivers for providing such services.
2. "Driver" means an individual who:
   (a) Is engaged by a delivery network company to provide delivery services;
   (b) May be classified as an independent contractor or an employee; and
   (c) Uses a personal or commercial vehicle to fulfill delivery requests.
3. "Consumer" means an individual who uses a delivery network company’s platform to request and receive delivery services.

SECTION 2.

A delivery network company shall, for each delivery transaction:

1. Clearly disclose to the consumer:
   (a) The total amount charged for the delivery, including all fees, tips, and service charges; and
   (b) The amount or percentage of the total that will be remitted to the driver.
2. Clearly disclose to the driver prior to accepting a delivery offer:
   (a) The total amount payable for the delivery; and
   (b) Any tip included; and

      (c) Delivery pick up and drop off location; and

      (d) Delivery total miles.

1. Ensure that:
   (a) One hundred percent (100%) of any tip provided by the consumer is paid to the driver; and
   (b) A driver's base compensation is not reduced based on the amount of a tip.

SECTION 3.

1. A delivery network company shall provide each driver with access to all contracts or terms of service that govern the relationship between the driver and the company.
2. Any updates or changes to contract terms shall be:
   (a) Provided to the driver via the digital platform and via email; and
   (b) Presented in clear and understandable language.
3. A delivery network company shall:
   (a) Make available all current contract templates to drivers in English and Spanish; and
   (b) Post notice of any revised contract terms at least fourteen (14) days prior to implementation.

SECTION 4.

1. A delivery network company shall maintain and publicly post a written driver deactivation policy.
2. If a driver is deactivated or restricted from accessing the platform, the company shall:
   (a) Provide written notice stating the specific reason for deactivation; and
   (b) Offer an internal appeal process that allows the driver to contest the deactivation and request reinstatement.
3. Deactivation policies and appeal procedures shall be made available on the company’s website.

SECTION 5.

1. When matching a driver with a consumer for a delivery, the company shall include a prompt or notice requesting that the consumer facilitate a safe delivery environment, which may include:
   (a) Keeping paths to delivery locations clear and well-lit; and
   (b) Securing pets or potential hazards.
2. A driver shall be provided no fewer than sixty (60) seconds to review and accept or decline a delivery offer.

SECTION 6.

1. A delivery network company shall submit quarterly reports to the Kentucky Labor Cabinet, containing the following data:
   (a) Average and range of driver compensation per delivery;
   (b) Percentage and distribution of tips among drivers;
   (c) Number of drivers deactivated during the reporting period and outcomes of appeal proceedings.
2. The Labor Cabinet shall compile and publish an annual report summarizing the data and providing recommendations for legislative or regulatory action as necessary.

SECTION 7.

1. A driver or consumer aggrieved by a violation of this Act may bring a civil action in a court of competent jurisdiction for:
   (a) Statutory damages of up to one thousand dollars ($1,000) per violation;
   (b) Actual damages; and
   (c) Injunctive or other equitable relief as the court deems appropriate.
2. The Kentucky Labor Cabinet may impose administrative fines not to exceed five hundred dollars ($500) per violation.

SECTION 8.

The Kentucky Labor Cabinet shall promulgate administrative regulations necessary to implement and enforce the provisions of this Act.

SECTION 9.

The General Assembly hereby appropriates sufficient funds from the General Fund to the Kentucky Labor Cabinet to carry out its duties under this Act for the fiscal year beginning July 1, 2026.

SECTION 10.

Sections 1 through 8 of this Act shall take effect on March 6th, 2026.

This Act is hereby declared to be an emergency measure in order to allow immediate preparation and rule making, and shall take effect upon its passage and becoming law.

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