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USA: Washington state passes contentious gig worker bill supported by Uber & Lyft that cements independent contractor status; incl. co. comment

In April 2022, the Governor of Washington signed into law a bill that provides some rights to gig workers while maintaining their status as independent contractors. The bill was supported by Uber, Lyft, and the local Teamsters Union, however it was opposed by labour advocates and the national Teamsters Union.

The bill creates a minimum pay rate for drivers across Washington state based on their location, which will only apply during the times they are carrying or picking up passengers, and establishes a sick pay policy for drivers. Drivers can also choose to use a 15 cent passenger fee to go towards a drivers resource centre. However, critics of the bill note that drivers still do not have access to health insurance and other traditional benefits associated with employment, and that the companies are still not paying into unemployment insurance. The bill would also prevent other cities in Washington state from regulating ride hailing companies.

Though the bill was supported by the local chapter of the Teamsters Union, the President of the National Teamsters Union, Sean O'Brien, came out against the bill noting that it would create standards that erode worker protections.

A spokesperson for Uber said the bill allowed drivers “to stay independent while gaining historic new benefits and protections." And a spokesperson for Lyft said the law gives drivers the “flexibility, independence, benefits, and protections they want and deserve.”