Washington Governor Passes Law to Give Uber and Lyft Drivers Benefits and Pay But NO Employee Status

Sophie Webster, Tech Times 01 April 2022, 02:04 pm

Washington Governor Jay Inslee has signed legislation into law that guarantees pay and benefits for ride-hail workers. The new law has set the minimum pay for drivers to $1.17 per mile and 34 cents per minute, with trips costing $3 each.

The ride-hail drivers at Uber, Lyft, and other companies will also have benefits, including paid sick leave, access to compensation, and family medical leave. Drivers can also make an appeal if they believe that they've been unfairly terminated.

Washington's New Law for Drivers

According to Reuters, the law has garnered support from labor organizers and ride-hailing companies. The Washington Drivers Union called the signing of the law an unprecedented victory that would reverse years of decreasing pay for drivers and help improve the overall quality of their lives.

Uber said in a statement that the law decisively gave drivers the mix of safeguards and independence they were asking for, while Lyft stated that the new law counts as a win that emerged when unions, companies, and politicians worked together.

Also Read: Uber London Launches 'Uber Green:' Fully Electric Vehicles Now Control Roads for The First Time

However, there are concerns that the law strips power away. It declares that drivers for ride-hailing companies are not employees, potentially limiting access to further benefits and more consistent hours, according to Engadget.

The law also bars cities and counties from applying additional regulations beyond the ones in effect. Seattle will still offer drivers higher pay, which is $1.38 per mile, 59 cents per minute, and $5.17 per trip, but companies such as Uber and Lyft have limited the scope of regulations that they might face.

Washington is the latest state in the United States to pass a law that sets the pay standards for gig-based rides.

Until now, only New York City and Seattle had passed the minimum wage for drivers in the country. This could make ride-hail work viable for more drivers and prompt other states to enact their own guarantees.

New York City to Increase Pay for Drivers

In February, Bloomberg reported that Uber and Lyft drivers in New York City are about to increase their paychecks. New York City's Mayor Eric Adams announced that the city would increase its minimum driver pay rate for both Uber and Lyft.

Both ride-hailing apps will have to pay their New York City drivers a minimum of $1.161 per mile and $0.529 per minute, which is around a 5.3% raise.

This is the first bit of good news for gig workers in the city. New York City ride-hail drivers have spent the past few years fighting for the right to unionize, which would allow them to bargain for better benefits and pay. However, a union has yet to materialize despite the protests.

The policy took effect on Mar. 1, and it was applicable to more than 90,000 drivers in New York City, according to NY 1.

Uber and Lyft are currently locked in a battle in California and Massachusetts over their classification of drivers as independent contractors, a label that frees both companies from paying drivers overtime, minimum wage, and other benefits.

In 2021, Uber stated that it is willing to follow UK drivers' minimum pay and benefits. However, that is yet to be finalized.

In the same year, Uber retracted its statement about providing health insurance to its drivers.