How Washington state brokered a truce between Uber and its drivers

On March 31, Washington became the first state in the US to guarantee rideshare drivers receive a minimum wage. The bill, signed into law by governor Jay Inslee, ensures all drivers in the state will earn at least $1.17 per mile and $0.34 per minute, including a minimum pay of $3.00 per trip with benefits such as paid sick leave and workers’ compensation insurance. The new law takes effect in January 2023.

But, crucially for the rideshare companies, workers will remain classified as independent contractors, not employees. Uber and Lyft insist that this independent contractor status is what gives rideshare drivers the flexibility they seek in the job, but it also frees the companies from other responsibilities of employers, like providing overtime pay and health insurance.

Amid the contentious fights over worker classification that Uber and Lyft have engaged in jurisdictions around the world —everywhere from California and Massachusetts to the entire UK—this legislation has emerged as a kind of “third way” that won agreement among some business, labor, and government interests. In an unusual alliance, the bill received support from Uber and Lyft, as well as local Teamsters and drivers’ unions, who see it as an effective compromise that could serve as a model for other states trying to manage the relationship between powerful ride-hailing corporations and their drivers.

Read the rest of this story on qz.com. Become a member to get unlimited access to Quartz’s journalism.