With the groundbreaking enactment of a new law relating to certain transportation network companies, rideshare drivers in Washington State 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 into law Engrossed Substitute House Bill (ESHB) 2076, which provides for minimum per-trip payments, paid sick leave, and workers’ compensation benefits for rideshare drivers. The law also effectively ensures that these workers will maintain their status as independent contractors and that transportation network companies will be free from the imposition of additional requirements on their businesses by local governments.
ESHB 2076 includes the following provisions:
The law also protects drivers from retaliation for exercising their rights under the law. The law does not appear to cover gig economy workers outside of the passenger platforms, such as those driving for grocery delivery companies, meal delivery, or other delivery service providers.
The statute provides an effective date of June 9, 2022, but as noted in the table above, several key provisions of the statute do not take effect until December 31, 2022, or January 1, 2023. Companies with rideshare drivers may want to be aware of these upcoming obligations and plan accordingly.
