Related Practices and Jurisdictions
With the landmark passage of new law regarding certain transit network companies, Washington state rideshare drivers will soon enjoy various benefits typically associated with employee status while retaining the independence and flexibility of their independent contractor status.
On March 31, 2022, Governor Jay Inslee signed Engrossed Substitute House Bill (ESHB) 2076 into law, providing for minimum per-ride payments, paid sick leave, and employee compensation benefits for ridesharing. The law also effectively ensures that these workers retain their status as independent contractors and that transport network companies are exempt from local governments imposing additional requirements on their companies.
ESHB 2076 contains the following provisions:
| Minimum Travel Payments |
Effective December 31, 2022, transit network operators must ensure that a driver’s total compensation is “not less than” US$0.34 per passenger platform minute and US$1.17 per passenger platform mile or US$3.00 per serviced trip, whichever is greater .
Drivers driving in cities with more than 600,000 inhabitants, such as B. Seattle earn a minimum of $0.59 per passenger platform minute and $1.38 per passenger platform mile or $5.17 per trip, whichever is greater. |
| Workers’ Compensation Insurance | Beginning January 1, 2023, the Washington State Department of Labor and Industries will evaluate premiums for rideshare workers’ compensation coverage. |
| Paid sick leave | Beginning January 1, 2023, drivers will be entitled to one hour of paid sick leave for every 40 hours worked, subject to the provisions of the Washington Paid Sick Time Act. This puts carpoolers on par with other workers in Washington in terms of paid sick leave. |
| Resource Center | The law creates a driver resource center to educate drivers about the benefits available to them under the law and to assist drivers who wish to appeal account deactivations. Passenger fees collected by the companies fund the resource center. |
The law also protects drivers from retaliation for exercising their legal rights. The law does not appear to cover gig economy workers outside of passenger platforms, such as B. Those who drive for grocery delivery companies, meal delivery companies or other delivery service providers.
The law specifies an effective date of June 9, 2022, but as indicated in the table above, several important provisions of the law do not become effective until December 31, 2022 or January 1, 2023. Ride-sharing companies may want to be aware of these upcoming obligations and plan accordingly.
© 2022, Ogletree, Deakins, Nash, Smoak & Stewart, PC, All rights reserved.National Law Review, Volume XII, Number 105
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