A first-of-its kind legislation that sets a minimum wage and other benefits for Lyft and Uber drivers was approved by Washington state lawmakers. The state bill offers a compromise between the interests of drivers and ride-hailing companies.
Lawmakers are expected to reconcile the differences between the versions of the bill that have passed the House and Senate. It has support from labor groups including Teamsters Local 117; Drivers Union, a teamster’s affiliate; and the Washington State Labor Council as well as Lyft and Uber. Democrats expect Gov. Jay Inslee to approve the legislation.
If passed into law, HB 2076 will:
-set a minimum wage for drivers during the time they have passengers, with a higher rate for drivers in larger cities; the rates are tied to the state’s minimum wage and increase accordingly;
provide drivers with paid sick leave, which is accrued only during the time they’re carrying passengers;
-creates the Driver Resource Center, an organization managed by the state’s Department of Labor and Industry with funding from ride-hailing companies that provides employment protections for drivers;
-establishes rights for drivers, including their ability to work the hours they want and allowing them to drive for multiple ride-hailing companies at once;
-sets statewide regulations for the ride-hailing companies;
-instructs the state to form a stakeholder group to decide how the companies and drivers will fund unemployment benefits, paid family medical leave and long-term care benefits.
The Driver Resource Center, a provision in the bill, establishes a system for resolving disputes between drivers and the companies, including an appeals process for drivers who have been “deactivated” or fired from a platform.
Lyft’s head of government relations person said the bill was the “culmination of years of work” with drivers and included “lots of creativity and compromise.”
Leaders from the nonprofit Drive Forward Seattle and from Massachusetts AFL-CIO testified against the bill concerned that drivers have lost their ability to fight for employee status, which could offer better benefits. It is unclear if the approval process has been too hasty.
Bills similar to “HB 2076 are being introduced all over the country. Other states and cities nationwide have likewise wrestled with efforts to regulate the gig industry. More than a dozen other states including Michigan, Texas, Florida and Alaska have regulations defining independent contractors in certain contexts.
Seattle, however, has been a leader in pushing for drivers’ rights. The city approved a 2020 bill creating a minimum wage for ride-hail drivers. The move was opposed by Uber and Lyft, the latter warning ominously that the rules would push the companies out of the city.
California approved a 2019 law that classified gig drivers as employees of the companies. Gig companies heavily funded a 2020 ballot measure to overturn the move. That effort is still being fought in court.
Massachusetts gig-worker companies are spending millions of dollars on a ballot measure that codifies the status of drivers and other gig workers as independent contractors, not employees. The measure could go to voters in November.
