July 2025

State Updates

 

Texas Adds Rules for Delivery Network Companies

08/07/25

Author: ADP Admin/Wednesday, August 6, 2025/Categories: Compliance Corner , State Compliance Update, Texas

Texas has enacted legislation (House Bill 4215), which adds rules for Delivery Network Companies (DNCs). House Bill 4215 takes effect Sept.  1, 2025.

The Details

Background

By way of background, the state of Texas requires transportation network companies to follow certain operating procedures. The state has extended and added certain requirements to Delivery Network Companies.

House Bill 4215

A DNC is 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. Note: The definition does not include a business entity that only delivers products produced by the entity or stored on the entity’s premises.

Under House Bill 4215, a delivery network company must obtain a permit from the Texas Department of Licensing and Regulation and pay a required fee.


Worker Screening


The company must also require individuals accessing the company’s digital network to:

  • Be at least 18 years of age;
  • Have a valid government-issued photo ID or driver’s license; and
  • Pass a criminal background check and a review of the individual’s driving record.

See the text of the law for further details and restrictions on the delivery individual's (a worker who performs a digitally prearranged delivery in Texas using the DNC’s digital network) access to the DNC’s digital network.

Independent Contractor Qualifications


HB 4215 also clarifies that in order for an individual to be classified as an independent contractor:

  • The DNC and delivery individual must agree to contractor status in writing; and
  • The DNC may not take the following actions regarding a delivery individual:
Required Policies


Under the law, DNCs must adopt and notify covered workers of the following policies for delivery individuals:

  • An intoxicating substance policy that prohibits a delivery individual logged into the digital network from any amount of intoxication; and
  • A nondiscrimination policy that prohibits discrimination against a customer or potential customer based on their geographic location, destination, race, color, national origin, religious belief, or affiliation, sex, disability or age.


Note: A DNC may not impose an additional charge for delivery to individuals with physical disabilities because of those disabilities.

Notice and Recordkeeping Requirements

A DNC must include a notice concerning the company’s intoxicating substance policy and how to make a complaint about a suspected violation of the policy on its internet website or digital network application. A DNC must maintain records relevant to a complaint for at least two years after the date the complaint is received.

Data Requirements


See the text of the law for further details on the collection, use or disclosure of records and other company information.

Next Steps

DNCs should review and update their workplace policies and procedures and train supervisors to help ensure compliance with House Bill 4215 by Sept. 1, 2025.

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