Oregon lawmakers are evaluating a new bill to improve working conditions for Uber and Lyft drivers. Senate Bill 1166, introduced during a Senate Labor and Business Committee informational hearing, seeks to establish more comprehensive protections for the state’s rideshare drivers. While receiving strong support from drivers and the union Drivers Union Oregon, which represents over 10,000 rideshare drivers, the bill faces opposition from Uber and Lyft representatives who believe the changes could disrupt their business models.
If passed, the proposed bill would implement changes as early as summer 2025, significantly changing the way rideshare drivers are compensated and treated in Oregon.
Drivers’ Voices on Senate Bill 1166
Salem-based rideshare driver Seth Aniagyei described the current conditions drivers face. “Driving for Uber and Lyft is becoming more precarious,” Aniagyei said in a statement. “The majority of trips are done by full-time drivers like me whose only income comes from these apps, and the big out-of-state corporations have all the control. They manage us through algorithms, fire us via email, lower our pay, and raise fees with no accountability. There has to be some limit to that, and that’s what we’re fighting for.”
The bill aims to address these concerns by introducing a range of protections, including:
- Minimum per-mile and per-minute compensation rates.
- Just cause protections to prevent unfair terminations.
- An appeals process for terminations.
- Access to paid sick leave.
- A dedicated resource center for drivers to provide support and benefits.
Oregon currently lacks a statewide policy for rideshare services, leaving regulations to local jurisdictions like the City of Portland. SB 1166’s passing would mark a significant shift by creating consistent rules across the state.
A Transparent Look at Driver Challenges
Stephanie King, a Portland-based rideshare driver, shared her personal struggles from years of driving full-time. “Even though rideshare driving has been framed as ‘gig work’ or a ‘side hustle,’ the bonus structures that were in place always demanded full-time participation. Many were unobtainable, even working back-to-back 12-hour shifts,” she said.
King highlighted the disparity in pay across Oregon cities, naming Portland as a major area of concern. “In Portland, we’re paid 40-60% less than in other Oregon markets like Salem, Eugene, Bend, and Medford,” she explained. “Over the last year and a half or so, that’s amounted to a $1,600 monthly pay cut for me.”
For King, the challenges extend beyond finances. She recounted an incident when Lyft removed its $100 electric vehicle bonus. “When Lyft cut the $100 [electric vehicle] bonus, it was the tipping point for me personally, and now I’m literally selling my body, having to sell blood plasma in order to not quite make ends meet,” she said. Currently, drivers like King earn just 70 cents a mile and 24 cents a minute, which she points out is only equivalent to the IRS’s mileage deduction rate.
King also criticized the mismatch between driver earnings and passenger fees. She highlighted one glaring example: “Driver pay does not correlate to the surge passengers pay in any way. I drove someone from Clackamas to Portland International Airport, and they paid $116 for the trip. I earned just $18.”
Nathaniel Hudson-Hartman, another driver testifying in favor of the bill, emphasized the need for an appeals process for driver terminations. “No worker should ever have to choose between their health and their income,” he said, recalling his unpaid time off while recovering from COVID. He also recounted being terminated without notice, saying, “It happened to me right after my father passed away, and I was devastated to know that all it took was canceling a trip out of grief.”
Corporate Concerns About Proposed Legislation
Uber and Lyft representatives expressed concerns about SB 1166’s potential impact on their business operations. Public policy representative Zahid Arab warned that the bill’s proposed compensation rates are among the highest nationwide, which he believes could make rideshare unaffordable for many.
“We’re concerned,” Arab said. “This [bill] seeks to set minimum per-mile and per-minute rates… [and] creates a driver resource center with unprecedented regulatory powers. Make no mistake, the compensation rates in this proposal are among the highest in the country, and when you add in the cost of living and insurance, these rates far outpace the rideshare models.”
Arab also argued that higher costs would reduce demand for rideshare services, potentially leading to fewer earning opportunities and making rideshare inaccessible for low-income and senior Oregonians who rely on such services for essential trips.
Marissa Cade, a Lyft representative, echoed these concerns but emphasized the company’s willingness to engage in discussions. “Lyft is in support of participating actively in a conversation with drivers, Uber, and the community in the potential workgroup,” Cade stated. According to Cade, a collaborative workgroup could analyze the potential economic impacts of the legislation and develop a solution that prioritizes drivers’ needs without compromising the overall rideshare model.
Next Steps for Senate Bill 1166
For now, Oregon rideshare companies and bill proponents will need to find common ground. Rep. Susan McLain (D-Forest Grove, Cornelius, Hillsboro) has agreed to host a workgroup over the summer to facilitate further conversations. During this time, lawmakers and stakeholders will evaluate potential compromises and weigh the effects of regulatory changes.
Time will tell whether Oregon becomes the latest state to implement stronger rideshare driver protections through legislative action or if a collaborative approach via the proposed workgroup will find a middle ground.
Source: KOIN
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