A new Washington law touted as a grand bargain among Lyft Inc., Uber Technologies Inc., their drivers, and a union local could nevertheless be ripe for a legal challenge if the experience of past gig worker measures is any indication.

The law, which Gov. Jay Inslee (D) signed March 31, would ensure Lyft and Uber can keep classifying their Washington drivers as independent contractors but requires the companies to provide benefits, including minimum per-trip pay and paid sick time.

The deal is the latest development in a wide-reaching battle over the employment status of ride-hail drivers and other gig economy workers—a battle that frequently lands in court. The companies for years have resisted driver and worker advocate demands to be recognized as employees, gaining workplace protections such as minimum wage, overtime pay, unemployment insurance, and collective bargaining rights.

The Washington measure is “plainly a very carefully negotiated political compromise,” said Timothy O’Connell, a management-side labor attorney with Stoel Rives LLP in Seattle. “It’s very clear both sides gave up some things and got some things.”

Despite the law’s negotiated nature, opponents could challenge it on several fronts, O’Connell said.

In particular, a city such as Seattle could sue over language that preempts future efforts to regulate ride-hail companies locally....

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