Historic Bill Targets Gig Economy Worker Protections
In a landmark move that could reshape the American labor landscape, Senators Brian Schatz and Chris Murphy introduced the Empowering App-Based Workers Act on July 25, 2025. This comprehensive legislation represents the most significant federal effort to date to address what advocates call "systematic exploitation" in the gig economy.
The bill comes at a critical moment as the platform economy continues to expand rapidly. According to Forbes Business Council, the global gig economy is projected to surpass $600 billion in 2025, accounting for approximately 12% of the global labor market. Yet workers in this sector have long operated in a regulatory gray area.
Key Provisions of the Legislation
The Empowering App-Based Workers Act contains several groundbreaking provisions designed to bring transparency and fairness to platform work. "For too long, app companies have operated in the shadows, using algorithms to determine pay and assignments without any accountability," Senator Murphy stated during the bill's introduction.
The legislation would require companies like Uber, DoorDash, and Amazon Flex to disclose how they use automated systems to manage workers. Key requirements include:
- Weekly pay statements with detailed compensation breakdowns
- Guaranteeing rideshare drivers at least 75% of each fare
- Prohibiting differential pay for the same job
- Restricting data collection on sensitive information like immigration status
- Providing itemized receipts to both workers and consumers
As Senator Schatz explained, "This bill is about basic fairness. Workers deserve to know how their pay is calculated and why they might be suspended from a platform."
The Human Cost of Platform Work
Recent research from Human Rights Watch reveals the stark reality facing many platform workers. Their investigation found that gig workers in Texas earn just $5.12 per hour after expenses - about 70% below a living wage. Three-quarters of workers struggle to pay for housing, and most have no access to health insurance, paid leave, or unemployment protections.
Maria Rodriguez, a rideshare driver from Austin, shared her experience: "I work 60 hours a week and still can't afford health insurance for my family. The company takes more than half of what passengers pay, and we have no say in how the algorithm decides our fate."
Industry Pushback and Economic Concerns
Not surprisingly, the legislation has faced significant opposition from platform companies. Industry groups argue that the new requirements would fundamentally change their business models and potentially increase costs for consumers.
A spokesperson for a major delivery platform, who requested anonymity, told reporters: "These regulations would undermine the flexibility that makes platform work attractive to millions of Americans. We're concerned about the impact on both workers and consumers."
However, labor advocates counter that the current system relies on worker exploitation. "These companies are making billions while their workers earn poverty wages," said Sarah Johnson of the Service Employees International Union. "It's time for basic protections that every worker deserves."
Global Context and Future Outlook
The US legislation comes amid a global movement to regulate platform work. The European Union is implementing a platform work directive by December 2026 that establishes employment presumption and algorithmic transparency requirements. Meanwhile, the International Labour Organization is negotiating the first-ever global standards for digital platform work, with negotiations scheduled for 2026.
Texas has already taken independent action, passing House Bill 295 in July 2025, which provides gig workers with health insurance stipends and a guaranteed minimum wage of $15 per hour. This state-level action demonstrates the growing momentum for worker protections.
As the debate continues in Congress, the fate of millions of platform workers hangs in the balance. With 16% of Americans having worked in the gig economy - disproportionately people of color - the outcome will have profound implications for the future of work in America.