Plain English Breakdown
The bill has passed both chambers but lacks a listed effective date, so it is unclear when the rules begin.
HB305: Rules for Paying Ride-App Drivers in Alaska
This bill sets minimum payment rules that transportation network companies must follow when paying drivers in Alaska.
What This Bill Does
- Requires companies to pay drivers at least 90 percent of the fare charged to riders for prearranged rides.
- Mandates extra pay if a driver travels more than 10 miles from where they accepted a ride request to pick up or drop off a rider.
- Sets the mileage rate for these long trips equal to the optional standard business mileage rate set by the IRS.
- Requires companies to pay drivers at least the state minimum wage for time spent traveling on these long trips.
- Prohibits companies from counting tips given by riders as part of the required payment for long-distance travel.
Who It Names or Affects
- Transportation network company drivers in Alaska
- Companies that operate transportation networks (ride apps) in Alaska
Terms To Know
- Prearranged ride
- A trip booked ahead of time through an app.
- Optional standard mileage rate
- The amount the federal government sets for businesses to calculate car expenses.
Limits and Unknowns
- This law only applies when a driver travels more than 10 miles from where they accepted the ride request.
- The official text does not state an effective date or how companies will enforce these rules in practice.