From JDSupra, Melissa Ackie, Emily Linn, and Scott McDonald discuss a host of bills affecting employment in Texas including a bill regulating Delivery Network Companies that provides delivery drivers are independent contractors if there’s a written agreement that says drivers can choose their own hours, can’t be prohibited from working for other companies, operate other businesses, and can’t be limited to working in a specific territory. Melissa, Emily, and Scott write:
New Regulations for Delivery Network Companies
HB 4215 outlines new regulatory and operational requirements for delivery network companies, defined as a business entity that offers or uses a digital network to arrange for the delivery of food, beverages, or consumer goods from a restaurant or retail establishment to a delivery customer.2 Effective September 1, 2025, delivery network companies are required to comply with the statutory provisions applicable to transportation network companies, including that a delivery network company must obtain a permit from the Texas Department of Licensing and Regulation, pay a required fee, and implement various policies and procedures in order to operate in the state. These procedures include requiring certain minimum qualifications for individuals accessing the company’s digital network, including that they be at least 18 years of age, have a valid government-issued photo ID or valid driver license, and that the individual pass a criminal background check and a review of their driving record. Under the new law, delivery network companies must adopt an intoxicating substance policy and nondiscrimination policy prohibiting a delivery person on the company’s digital network from any amount of intoxication or from discriminating against a customer or potential customer based on their geographic location, destination, race, color, national origin, religious belief, or affiliation, sex, disability, or age. Other provisions in the new law concern permitting requirements, fees, recordkeeping requirements, passenger disclosure and data sharing.
HB 4215 also prescribes when a delivery person can be considered an independent contractor, requiring that the company and delivery person agree to contractor status in writing, and that the company not:
- Prescribe specific hours during which the delivery person is required to be logged in to the company’s digital network;
- Impose restrictions on the delivery person’s ability to use other delivery network companies’ digital networks;
- Prescribe the territory within which the delivery person can provide deliveries; or
- Restrict the delivery person from engaging in another occupation or business.
Employers that qualify as “delivery network companies” should audit their employer practices to ensure compliance with this new framework. Non-compliance with these new rules could result in suspension or revocation of a company’s permit by the Texas Department of Licensing and Regulation.
Source: Texas Governor Signs Host of Bills Impacting Employment | Littler – JDSupra
HB 4215 provides:
Sec. 2402.134. DELIVERY PERSONS AS INDEPENDENT CONTRACTORS. A delivery person is considered an independent contractor for all purposes, and not an employee of a delivery network company in any manner, if:
(1) the company does not:
(A) prescribe the specific hours during which the delivery person is required to be logged into the company’s digital network;
(B) impose restrictions on the delivery person ’s ability to use other delivery network companies’ digital networks;
(C) prescribe the territory within which the delivery person may provide deliveries; or
(D) restrict the delivery person from engaging in another occupation or business; and
(2) the company and the delivery person agree in writing that the delivery person is an independent contractor.
