New Gig Worker Rights Bill Advances with Minimum Standards

Landmark Legislation for Gig Economy Workers

A groundbreaking bill that could transform the lives of millions of gig workers across the United States is gaining momentum in Congress. The Empowering App-Based Workers Act, introduced on July 24, 2025, represents the most comprehensive federal effort to date to address widespread exploitation in the platform economy.

Key Provisions and Protections

The legislation would establish minimum standards for app-based workers, requiring companies like Uber, DoorDash, and Amazon Flex to disclose how they use algorithms to manage, pay, assign work, and suspend workers. 'This bill represents a crucial step toward ensuring that the millions of Americans who power our digital economy receive the basic protections they deserve,' said Senator Brian Schatz, one of the bill's primary sponsors.

Among the most significant provisions are requirements that guarantee rideshare drivers at least 75% of each fare, limit algorithmic wage-setting practices, and prohibit paying workers differently for performing the same job. The bill also establishes clear limits on data collection, protecting sensitive information like immigration status and health data from being used against workers.

The Reality of Gig Work Today

Recent research from Human Rights Watch reveals the urgent need for these protections. Their study found that platform workers in Texas earn just $5.12 per hour after expenses - approximately 70% below a living wage. These workers typically have no access to health insurance, paid leave, or unemployment protections.

'We're talking about people working full-time hours but earning poverty wages with no safety net,' explained Maria Rodriguez, a gig worker advocate with the National Employment Law Project. 'This legislation would establish a federal floor of protections while allowing states and cities to pass stronger measures.'

Global Context and European Developments

The US legislation comes as similar reforms are taking shape globally. The European Union's Platform Work Directive, which took effect in December 2024, establishes comprehensive regulations for platform workers across member states. The EU directive includes a rebuttable presumption of employment status, requiring businesses to prove workers aren't employees if the platform appears to direct and control their work.

According to EU Council documents, these regulations focus on ensuring proper employment status classification, improving working conditions, regulating algorithmic management practices, and providing adequate social protections.

Industry Response and Implementation Challenges

Platform companies have expressed concerns about the potential impact on their business models. Industry representatives argue that the flexibility of gig work is a key benefit for workers and that overly restrictive regulations could reduce earning opportunities.

However, worker advocates counter that the current system leaves millions vulnerable. 'About 16% of Americans work in the gig economy, disproportionately people of color who are often misclassified as independent contractors,' noted labor economist Dr. Sarah Chen. 'This exclusion from traditional labor protections creates a two-tiered workforce that undermines our social safety net.'

The bill's implementation would face significant challenges, including enforcement mechanisms and potential legal challenges from platform companies. Nevertheless, supporters believe the growing recognition of gig workers' contributions to the economy makes this legislation timely and necessary.

Looking Ahead

As the bill moves through congressional committees, stakeholders on all sides are preparing for what could be a landmark shift in labor policy. The outcome could set precedents for how digital platform work is regulated not just in the United States, but globally.

'This isn't just about protecting workers - it's about building an economy that works for everyone in the digital age,' concluded Senator Chris Murphy, the bill's co-sponsor. 'We have an opportunity to ensure that technological innovation doesn't come at the cost of worker dignity.'