South Carolina Business Protection Bill | App-Based Drivers | Mileage & Small Business Advocacy

LEGISLATIVE FACT SHEET
South Carolina Independent Driver Mileage Protection Act

Problem

App-based drivers for Uber, Lyft, Walmart Spark, DoorDash, Instacart, and similar platforms are treated as independent contractors and small business operators, but many are paid less than the actual cost of operating their vehicles.

Drivers pay for:
Fuel
Tires
Oil changes
Brakes
Maintenance
Insurance
Depreciation
Vehicle replacement costs

When app companies pay below vehicle operating cost, South Carolina drivers lose equity in their personal vehicles.

South Carolina Precedent

South Carolina already recognizes mileage reimbursement as a legitimate vehicle operating cost when reimbursing state employees for business travel.

Proposed Change

Require all app-based transportation and delivery platforms operating in South Carolina to pay drivers a minimum mileage floor equal to the IRS Standard Business Mileage Rate for all engaged miles.

Engaged Miles Definition

Engaged miles should begin when the driver accepts the trip, delivery, or order and end when the trip, delivery, or order is completed.

Why This Matters

This protects:
South Carolina small businesses
Independent contractors
Personal vehicles as household assets
Local economic stability
Fair competition
Transparent pay
Requested Legislative Action

Sponsor legislation requiring app-based transportation and delivery companies to pay drivers no less than the IRS Standard Business Mileage Rate for engaged miles in South Carolina.

TESTIMONY

My name is Lori G Ashley®, and I am a South Carolina resident and independent app-based driver too.
I am here to ask you to protect South Carolina small businesses by creating a minimum mileage reimbursement floor for app-based drivers.
Drivers for companies like Uber, Lyft, Walmart Spark, DoorDash, Instacart, and similar platforms are classified as independent contractors. That means we are treated as small business owners. We pay for our own fuel, tires, brakes, oil changes, insurance, repairs, and vehicle depreciation.
The problem is that many app-based platforms use algorithmic pricing systems that can pay drivers less than the actual cost of operating a vehicle.
That means South Carolina drivers are not only working for low pay — we are losing value from one of our largest household assets: our cars.
This is not a union issue. This is not a partisan issue. This is a small-business protection issue.
South Carolina already recognizes mileage reimbursement as a legitimate cost when the State reimburses employees for business travel. If that mileage standard is fair for state business, then large out-of-state technology companies should not be allowed to push vehicle operating costs below that standard onto South Carolina independent contractors.
I am asking you to support legislation requiring app-based transportation and delivery companies to pay drivers at least the IRS Standard Business Mileage Rate for all engaged miles.
Engaged miles should begin when a driver accepts a ride, order, or delivery and end when that service is completed.
This bill would protect drivers, preserve local vehicle assets, and keep more money in South Carolina communities.
Thank you for your time, and I respectfully ask you to sponsor and support the South Carolina Independent Driver Mileage Protection Act.

DRIVER PETITION
Petition in Support of the South Carolina Independent Driver Mileage Protection Act

South Carolina residents and independent app-based drivers, respectfully request that the South Carolina General Assembly introduce and pass legislation requiring app-based transportation and delivery platforms to pay a minimum mileage reimbursement floor.

App-based drivers are independent contractors and small business operators. We use our personal vehicles to provide transportation, delivery, courier, shopping, and logistics services across South Carolina.

We pay for our own fuel, tires, brakes, insurance, maintenance, repairs, and vehicle depreciation.

We request legislation requiring platforms such as Uber, Lyft, Walmart Spark, DoorDash, Instacart, and similar companies to pay drivers no less than the IRS Standard Business Mileage Rate for all engaged miles.

Engaged miles should include all miles from the moment a driver accepts a trip, delivery, or order until the service is completed.

This legislation is needed to protect South Carolina small businesses, independent contractors, and personal vehicle assets.

Bill proposal

SOUTH CAROLINA APP-BASED TRANSPORTATION AND DELIVERY SMALL BUSINESS PROTECTION ACT
Legislative Intent

The General Assembly finds that:

Thousands of South Carolina residents operate as independent contractors and sole proprietors through app-based transportation and delivery platforms.

These independent contractors provide transportation, delivery, and logistics services using personally owned vehicles that constitute significant household and business assets.
Vehicle operating expenses, including fuel, maintenance, tires, depreciation, insurance, licensing, and financing costs, are recognized by both the State of South Carolina and the Internal Revenue Service as legitimate business expenses.

South Carolina state agencies currently utilize mileage reimbursement standards based upon the Internal Revenue Service Standard Business Mileage Rate when reimbursing state employees for the operation of personal vehicles used for official state business.

App-based transportation and delivery platforms frequently establish compensation rates through proprietary algorithms that do not provide sufficient reimbursement for the actual costs incurred by independent contractors operating motor vehicles.

Failure to compensate independent contractors at least the recognized cost of vehicle operation results in the erosion of personal assets, reduced economic activity within South Carolina, and unfair transfer of business costs from large technology platforms to local small businesses.

The State has a legitimate interest in protecting small businesses, preserving private property, and ensuring fair commercial practices within South Carolina.
Section 1. Definitions

For purposes of this Act:

(A) "App-Based Platform" means any digital network, software application, website, or technology platform that connects customers with independent contractors for transportation, delivery, courier, shopping, logistics, or similar services.

(B) "Independent Contractor Driver" means an individual classified as an independent contractor who provides services through an App-Based Platform.

(C) "Engaged Miles" means all miles traveled beginning at the moment a driver accepts a transportation, delivery, courier, or service request through an App-Based Platform and ending when the request is completed.

(D) "Mileage Compensation Floor" means the minimum mileage compensation required under this Act.

Section 2. Minimum Mileage Compensation

(A) Every App-Based Platform operating within South Carolina shall compensate Independent Contractor Drivers no less than the current Internal Revenue Service Standard Business Mileage Rate for all Engaged Miles.

(B) The mileage compensation floor shall automatically adjust whenever the Internal Revenue Service modifies the Standard Business Mileage Rate.

(C) No platform may reduce, offset, or otherwise circumvent the mileage compensation floor through service fees, algorithmic adjustments, bonuses, incentive structures, or other compensation mechanisms.

(D) The mileage compensation floor established under this Act shall be separate from and in addition to any compensation paid for:

Time;
Customer gratuities;
Surge pricing;
Incentive programs; or
Other earnings.
Section 3. Pay Transparency Requirements

(A) Prior to acceptance of any request, an App-Based Platform shall clearly disclose:

Total estimated miles;
Total estimated compensation;
Platform fees retained;
Estimated compensation per mile.

(B) Drivers shall have electronic access to a complete record of:

Total customer payment;
Platform commission;
Driver compensation;
Engaged miles;
Any deductions or adjustments.

(C) Records shall be maintained for a minimum of three years.

Section 4. Asset Protection and Fair Business Practices

(A) No App-Based Platform shall require an Independent Contractor Driver to perform transportation or delivery services at compensation below the mileage compensation floor.

(B) Any contract provision attempting to waive rights established under this Act shall be void and unenforceable.

(C) Independent Contractor status shall not be affected by compliance with this Act.

Section 5. Automated Deactivation Protections

(A) No Independent Contractor Driver may be permanently deactivated solely through automated decision-making systems.

(B) Drivers shall receive:

Written notice of the reason for deactivation;
Access to supporting evidence;
A meaningful appeal process;
Review by a human decision-maker.
Section 6. Enforcement

(A) The South Carolina Department of Consumer Affairs shall have authority to enforce this Act.

(B) A violation shall constitute an unfair trade practice.

(C) Drivers may bring a civil action to recover:

Unpaid mileage compensation;
Actual damages;
Reasonable attorney's fees;
Court costs.

(D) Civil penalties of up to $5,000 per violation may be assessed against a platform found to be in violation of this Act.

Section 7. Severability

If any provision of this Act is found invalid, the remaining provisions shall remain in effect.

Section 8. Effective Date

This Act shall take effect immediately following approval by the Governor.

Suggested Bill Title

"The South Carolina Independent Contractor Vehicle Asset Protection and Fair Compensation Act"

Supporting Legislative Argument

Independent drivers are small businesses.
South Carolina already recognizes the IRS mileage rate as a reasonable estimate of vehicle operating costs.
If the State reimburses its own employees at that rate, app-based companies should not be permitted to compensate independent contractors below that recognized cost benchmark.

The bill protects South Carolina-owned assets and keeps money circulating in local communities rather than shifting vehicle depreciation costs onto local residents.

This framing tends to focus the discussion on small-business protection, consumer transparency, and fair commerce rather than employee classification.