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UBER Drivers to Get Guaranteed Pay as Per New Washington Law

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Uber Technologies’ (UBER - Free Report) drivers in Washington are set to earn as per the minimum pay standard in the state. Washington governor Jay Inslee has signed into law a minimum pay standard for ride-hail companies, making Washington the first U.S. state to do so.

Per the new law, Uber drivers across the state will earn a minimum of $1.17 per mile and 34 cents per minute, with minimum pay of $3.00 per trip, effective Dec 31, 2022. Drivers will also be provided with paid sick leave, family medical leave and long-term care programs, as well as workers' compensation when they become injured or ill on the job. Ride-hail drivers will also have the right to appeal in case they get removed from the apps.

Despite this new state law, in Seattle, WA, Uber and other ride-hail drivers will continue to earn minimum rates of $1.38 per mile and 59 cents per minute at a minimum of $5.17 per trip, as per the city’s own ride-hail pay standard set in September 2020. Apart from Seattle, New York City also has minimum pay standards for ride-hail drivers, implemented earlier.

This new Washington state law has been well accepted by ride-hail companies, including UBER. It states that ride-hail drivers are not employees and prohibits local regulatory power from imposing additional requirements for these companies, a Reuters report stated.

Uber and other ride-hail companies have long been embroiled in legal battles in the United States pertaining to their driver status. In compliance with state labor laws, they have been asked to classify their drivers as employees. Ride-hail companies have sought to retain the independent contractor status for their drivers while offering them a number of worker benefits, including a certain amount of guaranteed earnings, a healthcare stipend and accident insurance for on-the-job injuries.

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Uber carries a Zacks Rank #3 (Hold).

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