Law defining marketplace platform workers as independent contractors effective July 1

After the Alabama Legislature concurred in her executive amendment, the governor signed into law legislation defining workers for certain marketplace platforms, such as Uber, Grubhub, Lyft, Waitr and Alabama-based Shipt, as independent contractors.

Act No. 2022-197 by Sen. Arthur Orr, R-Decatur, takes effect July 1.

The law specifically deals with those who enter into an agreement to use a platform’s digital network or mobile application to connect with third parties seeking the independent contractors’ services. The platforms will not be considered employers and those contracting with those platforms will not be considered employees in Alabama.

There is no employer per se,” said Orr. The shoppers or deliverers “use an app to get their job and the marketplace platform doesn’t prescribe specific work hours or preclude them from having other employment,” he said.

The governor’s amendment makes it clear that marketplace contractors who perform services for a state or local government entity, a federally recognized Indian tribe or 501(c)(3) nonprofit organizations must follow federal unemployment compensation requirements.

The Alabama House gave final approval March 15 to the legislation, while the Alabama Senate approved it a month earlier, Feb. 15. The governor signed it into law April 1.


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Originally posted 4 p.m. April, 1, 2022