Companies like Uber and Lyft consider their drivers to be “independent contractors,” which is all about freedom—specifically, the company’s freedom to not pay for things like workers comp, unemployment, or even the minimum wage. That’s a system facing significant court challenges in some places, and now another form of challenge in Seattle. The Seattle City Council on Monday night passed a bill giving drivers union rights.
Under the bill passed Monday, “for-hire drivers” would be legally entitled to seek out “exclusive driver representatives” for the purpose of collective bargaining — i.e., labor unions. If a majority of drivers at a particular company designate a union as their representative, then by law the company will have to bargain with the union within the city of Seattle.
The law has implications well beyond Uber and Lyft. Many traditional taxi drivers are classified as independent contractors as well, and would have new rights under the law.
At least, they would if the law ever goes into effect. Uber and others in the industry are expected to challenge the law in two possible ways: by claiming that it conflicts with federal labor law, and by arguing that it runs afoul of antitrust law.
Seattle Mayor Ed Murray said he won’t sign the law, but he can’t block it. Despite the delays the law will face thanks to legal challenges, the pressure is growing—on multiple fronts—for Uber and Lyft and other gig economy companies to quit using the weakness of American labor law to exploit their workers.
This blog originally appeared in DailyKOS.com on December 15, 2015. Reprinted with permission.
About the Author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and Labor editor since 2011.