Relating to transportation network companies; declaring an emergency.
SB 1166 creates a new regulatory framework for transportation network companies operating in Oregon, including rideshare platforms. The bill sets minimum compensation standards for drivers based on time and miles, requires payment for certain canceled trips and surcharges, and prohibits improper withholding or diversion of driver pay. It also requires companies to remit tips in full and to adjust minimum compensation rates annually based on inflation or state minimum wage changes, whichever is higher in the relevant circumstance.
The measure also establishes paid sick time rules for drivers, including accrual, carryover, permitted uses, notice procedures, confidentiality protections, and anti-retaliation safeguards. In addition, it requires detailed trip receipts and weekly earnings statements for drivers, mandates recordkeeping and disclosure to the Bureau of Labor and Industries (BOLI), and requires written notices of driver rights in plain language and the five most commonly spoken languages in Oregon. The bill gives BOLI enforcement authority, allows drivers to file complaints or civil actions, and authorizes civil penalties for violations.
A major additional feature of the bill is its “just cause” standard for account deactivations. Transportation network companies may not deactivate a driver unless they can show just cause, including notice of policies, a fair and objective investigation, consistent application of rules, substantiated misconduct, progressive discipline, and consideration of mitigating circumstances. Drivers may sue for damages and injunctive relief if deactivated in violation of that standard, and prevailing plaintiffs are entitled to attorney fees.
The bill’s impact on Oregon law is significant because it creates new statutory protections specifically for app-based drivers regardless of whether they are classified as employees or independent contractors. It effectively imposes wage, leave, notice, recordkeeping, and due-process requirements on transportation network companies and gives BOLI a central enforcement role. The bill also states that its requirements are minimum standards and do not limit more generous company policies or agreements.
Overall, the committee history suggests the bill had meaningful support but also some hesitation. It moved out of committee without recommendation and later advanced on a 3-2 vote with amendments and a referral request to Ways and Means, indicating support from a majority but not unanimity. Because there are no transcripts, the precise debate is not recorded here, but the structure of the bill suggests the main policy focus was improving driver pay and protections while imposing new compliance obligations on transportation network companies.
SB 1166 would add a new set of labor and consumer-protection requirements for transportation network companies in Oregon, primarily affecting rideshare and similar app-based platforms and their drivers. It would require minimum driver compensation, paid sick leave accrual and use rules, trip-level and weekly earnings disclosures, recordkeeping, anti-retaliation protections, and a just-cause standard for account deactivation. The bill also amends the enforcement landscape by assigning BOLI administrative and investigative authority and by creating civil remedies, including penalties, wage-claim rights, damages, injunctions, and attorney fees. Its operative date is January 1, 2026, though the act takes effect July 1, 2025 due to an emergency clause.
The available voting history indicates generally favorable sentiment toward the bill among committee members, but not unanimous agreement. It received a 4-0 committee action earlier in the process and later advanced 3-2 with amendments, suggesting the measure was considered important enough to move forward but still drew some reservations. With no committee transcripts provided, the record does not show detailed public arguments, but the bill’s progression implies support for stronger driver protections alongside some concern about the scope of regulation imposed on transportation network companies.
The main points of contention likely center on the bill’s treatment of gig workers as a protected class for compensation, sick leave, and deactivation rights, and on the administrative and financial burdens placed on transportation network companies. The just-cause deactivation standard is especially significant because it limits platform discretion and requires a documented investigation and progressive discipline before deactivation. Another likely area of debate is the minimum compensation formula and the requirement to pay for certain canceled trips and surcharges, which could increase operating costs. Supporters would likely emphasize fair pay, transparency, and due process for drivers, while opponents would likely focus on flexibility, business costs, and whether the bill effectively regulates independent contractors like employees.