SB587 • 2026

Transportation network companies; establishes minimum compensation rates, civil penalty.

<p class=ldtitle>A BILL to amend the Code of Virginia by adding in Article 15 of Chapter 20 of Title 46.2 a section numbered 46.2-2099.54, relating to transportation network companies; minimum compensation; civil penalty.</p>

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Salim
Last action: 2026-01-29
Official status: Failed
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Transportation Network Companies; Minimum Pay and Penalties

This bill sets minimum pay rates for drivers working with transportation network companies, prohibits counting passenger tips as part of driver compensation, allows direct tip acceptance by drivers, and authorizes the Department of Motor Vehicles to enforce penalties on TNCs that violate these rules.

What This Bill Does

Sets a minimum pay rate for TNC drivers based on miles driven and time spent driving.
Forbids transportation network companies from including passenger tips in driver compensation calculations.
Allows TNC drivers to accept tips directly from passengers, either in cash or electronically.
Requires the Department of Motor Vehicles (DMV) to establish a process for reporting violations and investigating claims against TNCs.
Gives the DMV authority to enforce penalties on transportation network companies that violate these rules.

Who It Names or Affects

Drivers who work with transportation network companies like Uber or Lyft
Transportation network companies operating in Virginia

Terms To Know

TNC partner: A driver working for a transportation network company.
Consumer Price Index (CPI): An index that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Limits and Unknowns

The bill did not pass as it was defeated in Transportation Committee on January 29, 2026.
It is unclear how much impact this would have had if enacted due to its defeat.

Bill History

2026-01-29 Transportation
Failed to report (defeated) in Transportation (5-Y 8-N 2-A)
2026-01-14 Senate
Prefiled and ordered printed; Offered 01-14-2026 26103734D
2026-01-14 Transportation
Referred to Committee on Transportation

Official Summary Text

Transportation network companies; minimum compensation; civil penalty.
Establishes minimum compensation rates for TNC partners. The bill also prohibits gratuities from passengers from being included in TNC partner compensation calculations, authorizes TNC partners to collect gratuity in cash or electronically, and prohibits transportation network companies from limiting the amount that can be paid as gratuity through such companies' digital platforms. The bill requires the Department of Motor Vehicles (DMV) to establish a process for reporting violations and to investigate claims. The bill authorizes enforcement by civil action or by civil penalties assessed by the DMV Commissioner.

Current Bill Text

Read the full stored bill text

A BILL to amend the Code of Virginia by adding in Article 15 of Chapter 20 of Title 46.2 a section numbered
46.2-2099.54
, relating to transportation network companies; minimum compensation; civil penalty.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Article 15 of Chapter 20 of Title 46.2 a section numbered
46.2-2099.54
as follows:

§
46.2-2099.54
.
Minimum compensation
.

A.
Any transportation network company operating in the Commonwealth shall est
ablish and comply with a rate card that applies to all TNC partners associated with such transportation n
etwork company. Such rate card shall require
the
minimum
compensation of a TNC partner and shall be paid in a per mi
le
, per minute format
as follows
:

1. A
minimum

compensation
of $6 for any
transportation of a
passenger
by a TNC partner;

2. A
base fare of $2
and a
n additional $1.50 per mile and
50 cents (
$0.50
)
per minute
, which shall apply
(i) from when the TNC driver accepted the trip until the completion of such trip and (ii)
whenever
the TNC partner is required
to be
logged into the digital platform related to the arranged
transportation of a
n identified

passenger
b
y
the
TNC partner;

3. A minimum compensation of $5 for any trip request
(i)
cancelled by a
prospective passenger
or
(ii)
for which the
passenger

is not present at the pickup location within fi
ve
minutes of being notified that th
e
TNC partner is present at the pickup
location
and such trip is cancelled by the TNC partner
.

B.
The Department shall adjust the minimum
required
compensation amounts and fares prescribed in subsection A
annually by the Consumer Price Index.

C.
Any gratuities received by
a TNC partner from a
passenger
are the property of the
TNC partner
, are not considered part of
the fare,

and
shall not be
included as part of the minimum compensation required pursuant to this section
or any other compensation
algorithm used by the transportation network company
.
TNC partners
are
authorized to accept
gratuity

in cash or electronically. No transportation network company shall limit the amount
that can be paid as a
gratuity
from
a passenger
to the TNC partner through the transportation
network company's
digital platform.

D.
If a
transportation network company
bans or deactivates a TNC partner from i
ts
platform
, such transportation network company shall deposit
any funds remaining
in
such TNC partner's account
in the bank account associated with such TNC pa
rtner or
send such funds
by check mailed to the last known address of such TNC partner within
10 days of such ban or deactivation.

E.
The Department shall establish a
process
for TNC partner
s
and former TNC partners
to report violations of the provisions of this section.
The Department shall investigate any such claims and take any enforcement actions deemed appropriate by the Commissioner, including
(i)
ordering

fines or restitution payable to
the TNC partner
, (ii) assessing civil penalties
to the transportation network company
for violations,
and
(iii)
revo
king
or suspen
ding

such transportation network company's certificate of fitness issued by the Department.

F. In addition to the remedies esta
blished pursuant to subsection E, any person who suffers loss by reason of a violation of any provision of this chapter may bring a civil action to enforce such provision.