Washington enacts ground-breaking rideshare law

Governor Jay Inslee recently signed Engrossed Substitute House Bill (ESHB) 2076 into law, making Washington the first state to require minimum per-trip payments, paid sick leave, and workers’ compensation benefits for rideshare drivers. The law also provides drivers will remain classified as independent contractors—not employees—and expressly forbids local governments from imposing new regulations on transportation network companies.

Law’s requirements

EHSB 2076 defines a transportation network company as “a corporation, partnership, sole proprietorship, or other entity that operates in this state, and uses a digital network to connect passengers with transportation network company drivers to provide prearranged rides.” The new law includes the following requirements:

Minimum per-trip payments. Beginning December 31, 2022, transportation network companies must ensure a driver’s total compensation is (1) at least $0.59 per passenger platform minute and $1.38 per passenger platform mile or (2) a minimum of $5.17 per dispatched trip, whichever is greater, for all dispatched trips originating in cities with populations over 600,000, such as Seattle.

For dispatched trips originating outside of Seattle, the companies must ensure a driver’s total compensation is (1) at least $0.34 per passenger platform minute and $1.17 per passenger platform mile or (2) a minimum of $3.00 per dispatched trip, whichever is greater.