Washington state passed legislation on Thursday creating a minimum wage standard and benefits for drivers who contract with ride-hailing companies like Uber and Lyft, becoming the first state to introduce not only an income basis but also a paid sick leave policy for drivers introduces the independent contractors.
Governor Jay Inslee (D) signed the law into law on Thursday. The law goes into effect in December and will ensure ridesharing drivers earn $1.17 per mile and $0.34 per minute. You also get $3 for each ride.
Drivers operating in cities with more than 600,000 residents like Seattle earn $1.38 per mile, $0.58 per minute and $5.17 per trip. Seattle passed legislation in 2020 that sets a minimum wage for city drivers.
However, the new Washington state law also creates a paid sick leave policy for the gig economy workers. From 2023, drivers will also be credited with one hour of paid sick leave for every 40 hours worked.
The measure won support from Uber. In a blog post Thursday, Uber said the law has broad support from most of its drivers because it gives them flexibility as independent contractors while setting a base fee.
“This law protects flexibility and independence,” Uber said. “You can go on whenever you want. It ensures there are no set schedules, no bosses, no time clocks.”
Lyft worked closely with lawmakers and a local Teamsters union to enforce the measure, according to statements submitted to the state legislature and forwarded by the company to The Hill.
“The bill ensures that we, as a company, do our part to meet these costs with new contributions to state tax coffers,” Jen Hensley, Lyft’s head of government relations, said in testimony in February. “We are committed to working with legislative leadership to address these costs in a manner that does not overburden other parts of Washington state’s economy.”
Ride-hailing services are one of the fastest-growing jobs in the gig economy, but Uber and Lyft have faced controversy over how they pay independent contractors, with some criticizing them for profiting from drivers’ work.
The companies have opposed introducing a minimum wage for their workers because it would change the way the service works, arguing that workers in the gig economy want flexibility and often drive as a part-time job.
California passed legislation in 2019 reclassifying gig workers as employees, but ride-hailing and other delivery companies supported a 2020 ballot measure that exempted drivers from the law.
Uber, Lyft, DoorDash and other companies have also opposed the federal PRO Act, which would reclassify gig workers as employees and give them the right to unionize.
Washington’s law was also supported by a local union that worked with state legislators on the legislation.
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Democratic state Representative Liz Berry said during a committee hearing in February that “every penny” in the bill was negotiated between a local Teamsters union and the transportation companies.
“Both sides would say it’s been a huge effort to get to where we are now,” Berry said.
– Updated at 7:02 p.m
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