Uber and Lyft drivers across Washington State will earn a minimum of $1.17 per mile and 34 cents per minute with a minimum payment of $3.00 per trip under a new bill that was signed into law by Governor Jay Inslee on Thursday.
The law makes Washington the first state in the U.S. to implement earnings standards for ride-hail companies, following the lead of cities like New York and Seattle, reports Reuters. In 2020, the latter mandated that drivers earn a minimum rate of $1.38 per mile, 59 cents per minute, and $5.17 per trip.
Seattle will continue to be able to mandate that higher rate but the law prevents other cities and counties in the state from doing the same, a measure both Uber and Lyft supported.
Read Also: Lyft Adds A Temporary $0.55 Surcharge To Each Ride To Help Offset Fuel Costs
Most controversially, though, the law states that ride-hail drivers are not employees. The issue has been a hotly debated one, with ride-hail companies arguing that people who drive for them are independent contractors and, therefore, not entitled to the greater benefits and protections that some labor groups believe the drivers should get.
Despite that, the law was supported by the Teamsters union Local 117, which was also behind the drive for Seattle pay standards. Both Lyft and Uber have also signaled their support for the law.
“Drivers achieved this win because labor organizations, legislators, and app-based companies listened to them, and then worked together to drive a historic bill that works for them,” Lyft’s head of government relations, Jen Hensley, said in a statement.
Earlier this month, Uber agreed to list New York City yellow cabs on its app, another first for the U.S. market. The move was seen by many as a reaction to a driver shortage following the pandemic and rising fuel prices. Both it and Lyft have also decided to implement fuel surcharges on trips as a result of the historically high cost of gasoline.
