A Seattle ordinance that grants drivers for Uber, Lyft and other similar ride-hailing companies the right to form unions remains on hold after an Aug. 29 federal court ruling. Back in 2015, Seattle passed a law allowing the drivers to organize and bargain over pay, benefits, and more. Because Uber and Lyft classify drivers as independent contractors, their drivers are not permitted to unionize under the National Labor Relations Act due to the fact that only “employees” (not contractors) may do so.
Uber and Lyft have opposed the ordinance and various groups, including the U.S. Chamber of Commerce, have joined in their defense by filing legal challenges against the law. Those challenges, however, largely have been unsuccessful, at least to date.
On Aug. 29, however, the U.S. Court of Appeals for the Ninth Circuit entered a temporary stay against the ordinance and prevented certain disclosure requirements under the law from going into effect until that court can evaluate the legal arguments being raised by the Chamber of Commerce. To the extent the ordinance does become law, Seattle will be the first U.S. city to allow Uber and Lyft drivers to form unions. The implications could be huge for the so-called gig economy if other cities and/or states follow Seattle’s lead and pass similar legislation, whether it be related to companies like Uber and Lyft or other players.