Alabama lawmakers push to bring portable benefits to app-based workers

MONTGOMERY, Ala. ( WIAT ) — Whether through driving or delivering groceries, app-based workers earn their wages like other employed Alabamians. However, lawmakers say these workers don’t receive benefits like other employees in the state.

Independent contractors do not get retirement benefits or paid time off under federal law. If they do, it can be more of a hurdle than helpful. This issue extends to app-based workers employed by companies like Lyft, Shipt and Uber.

State Rep. Neil Rafferty (D-Birmingham) Rafferty, co-chair of the legislative Portable Benefits Task Force, says he knows many who rely on app-based work for income.

“Financial security for Alabama families is a bipartisan issue. I don’t think that is anything that’s a red or a blue issue,” said Rafferty. “I think both sides of the aisle tend to see that this is a growing part of the economy that we need to be addressing.”

State Sen. Arthur Orr (R-Decatur) is one of those people across the aisle. He says lawmakers are collaborating with attorneys and app-based workers on the task force.

“What we’d like to do is set up a mechanism where the company contracting with these individuals can provide some level of benefits,” Orr said.

He explained that, for some major brands, this has become an issue.

“It’s a big problem in the Birmingham market for Shipt across its national footprint. How we can solve this issue?” Orr said. “So we’re looking forward to the work ahead because it will help here in Alabama over 80,000 people.”

For the latest news, weather, sports, and streaming video, head to WKRG News 5.