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DoorDash Launches Benefits Program for Pennsylvania Delivery Drivers

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DoorDash Launches Benefits Program for Pennsylvania Delivery Drivers


DoorDash Inc. is paying its delivery couriers in Pennsylvania additional money for a limited time to cover some benefits that are normally reserved for full-time employees.

DoorDash will make monthly contributions starting in July into an individual savings account managed by benefits platform Stride. The funds can be used for retirement savings or paying off health insurance premiums, for example.

Drivers who earn at least $1,000, excluding tips, on DoorDash in the second quarter will be eligible to receive deposits equal to 4% of their earnings, according to the company, which is running a pilot program from April through September with the backing of Pennsylvania Governor Josh Shapiro.

“We know that outdated rules have meant there are trade-offs for those who dash more consistently and may be missing out on important benefits,” said DoorDash co-founder and Chief Executive Officer Tony Xu in a statement on Wednesday. “I hope this program will provide an example of how we can better meet the unique needs of those who do this kind of work.”

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DoorDash shares were up 1.2% to $139.17 Wednesday morning in New York.

Companies that employ gig workers, including Uber Technologies Inc., Lyft Inc. and Instacart, have come under growing pressure from regulators and labor advocates to provide better pay and labor benefits to their drivers and couriers, who aren’t salaried employees with traditional legal protections.

Independent Contractors

In legal settlements and resolutions in the US, regulators and companies have embraced an “independent contractor-plus” model, which provides some employee benefits on the job while keeping gig workers off the payroll. The setup allows corporations to control costs and uphold the employment flexibility they say most drivers want. DoorDash said its average courier spends less than four hours a week on delivery and a “vast majority” of drivers have other sources of income or responsibilities that already provide them with access to benefits.

In New York, Uber and Lyft agreed last year to put in place a minimum “earnings floor” based on driving time, offered paid sick leave and pledged to improve hiring and earnings notices. Uber said the agreements will prevent further litigation over whether drivers should be classified as traditional employees as long as the company adheres to the terms of the deal.

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In 2020, gig economy companies bankrolled California’s Proposition 22 ballot initiative, which keeps drivers as independent contractors but requires the platforms to establish a pay floor, pay a monthly health care stipend and offer additional occupational accident insurance.

Stride CEO Noah Lang said the company is in talks with more states and cities to set up similar arrangements, and expects more employers to make contributions for their independent workers using the firm’s new savings account product. Since its 2014 launch, Stride has partnered with more than 100 organizations including Uber and Amazon.com Inc. to provide workers without benefits with access to various health insurance plans — as an insurance broker — mileage and expense tracking and tax support, among other services.

“We’re in an era where over 64 million Americans work independently,” Lang said. “It’s time for our benefits system to catch up to the way Americans work today.”

Copyright 2024 Bloomberg.

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Pennsylvania

A Pa. utility shutoff law is expiring. Here’s what you need to know

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A Pa. utility shutoff law is expiring. Here’s what you need to know


Have a question about Philly’s neighborhoods or the systems that shape them? PlanPhilly reporters want to hear from you! Ask us a question or send us a story idea you think we should cover.

A Pennsylvania law that lays out how and when utility companies can shut off customers’ electricity, gas or water expires Dec. 31.

But the state’s ban on shutoffs for low-income customers during the winter months and other protections will continue uninterrupted.

“The message that we’ve been hoping that people really hear is not to panic,” said Elizabeth Marx, executive director of the Pennsylvania Utility Law Project.

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Utility shutoffs are an experience many Pennsylvania households deal with. In the first 10 months of 2024, utilities in the state disconnected more than 300,000 households and reconnected fewer than three-quarters of them.

In Philadelphia, one in four low-income households spends at least 16% of its income on energy bills — an energy burden that’s considered severe. Black and Hispanic households in Philadelphia spend more of their income on energy than households overall, and national surveys have shown non-Hispanic Black and Hispanic households are disconnected from utility service at higher rates than non-Hispanic white households.

Here’s what you need to know about the sunsetting statute. 

Pa.’s ban on shutoffs for low-income customers during the winter continues

Pennsylvania’s winter shutoff moratorium will continue even after the law expires, because this and other protections are duplicated in another part of state code.

Between the frigid months of December through March, public utilities in Pennsylvania are restricted from terminating low-income customers’ service for nonpayment without permission from the Public Utility Commission.

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Water utilities cannot terminate heat-related service during this time period.

Gas and electric utilities cannot terminate service for households earning below $3,137 monthly for an individual or $6,500 for a family of four, based on the 2024 federal poverty guidelines.

“We understand the importance of these protections to Pennsylvanians and remain committed to balancing the needs of consumers and utilities,” said Stephen DeFrank, Pennsylvania Public Utility Commission chairman, in a statement.

There is a partial exception for city gas utilities, which can terminate service for households earning $1,882 to $3,137 monthly for an individual or $3,900 to $6,500 for a family of four, during part of the winter under certain circumstances.

If you can’t pay your utility bills in full, Marx recommends making at least some payment, because utilities consider a positive payment history when setting up payment plans.

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“Paying what you can, when you can, is very important, especially even through the winter, when the winter moratorium is in place,” she said.



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Pennsylvania

Ice-cold temperatures overnight, Impact Day Sunday

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Ice-cold temperatures overnight, Impact Day Sunday


Bitter cold weather has been the theme throughout the evening into tonight. Breezy winds will produce wind chill values in the teens overnight, then single digits to teens for our Sunday, prompting an Impact Day. Find out when we may have a chance at warming back up next week in the full forecast.



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Pennsylvania

$1M winning Mega Millions ticket sold in Pennsylvania

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M winning Mega Millions ticket sold in Pennsylvania


Check your tickets! Someone in Pennsylvania won big in Friday’s Mega Millions drawing.

While the jackpot is still rolling, someone in Pennsylvania matched all five winning numbers drawn Friday night— 2-20-51-56-67, but not the Mega Ball, 19, to win $1 million. The Megaplier was 2X.

Three other Pennsylvania Mega Millions players matched four of five numbers drawn, winning $10,000.

Click here for more information from the Pennsylvania Lottery and to check if your ticket won anything.

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The Mega Millions jackpot is estimated to be worth $944 million for the next drawing on Christmas Eve.

The Mega Millions odds are 1 in 302.6 million. Winners can choose an annuity with annual payments over 29 years, but most almost always take the cash option.

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