In a groundbreaking move that gig economy companies hope to be mimicked across the country, Washington just enacted a new state law that guarantees minimum per-trip pay rates, paid sick leave, and workers’ compensation benefits for rideshare drivers in exchange for a guarantee that the workers are classified as independent contractors. The compromise was the result of a deal struck between companies and an advocacy group supporting rideshare drivers. By signing HB 2076 (aka the “Expand Fairness Act”) on March 31, Washington governor Jay Inslee created a California Prop 22-like solution that provides the needed flexibility sought after by gig businesses (and workers) while also offering a social safety net for workers that will enable them to perform gig work on a full-time basis if wanted.
What Do Workers Get?
Under the new law, Washington rideshare drivers have won the right to a variety of benefits typically enjoyed by those with employee status:
Minimum Trip Payments
The law guarantees minimum per-trip rates based on the location of where the dispatched trips originate, ranging from $3.00 to $5.00 per trip as the floor, or between 34 cents to 59 cents per minute or $1.17 to $1.38 per mile. These amounts will be adjusted each year to align with the state’s minimum wage as closely as possible, and do not include tips.
Paid Sick Leave
Drivers will also be able to accrue sick leave under the Expand Fairness Act starting in 2023. They will accrue one hour of paid sick leave...
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