In cities across the U.S., rideshare drivers and their advocates are pressing for stronger labor protections and benefits, even as companies like Uber and Lyft push back, warning that higher driver wages could lead to pricier rides.
Murphy Smith, 47, found a lifeline as a rideshare driver after battling severe asthma and being out of work for four years. Based in Eugene, Oregon, Smith says driving gives him a way to earn without aggravating his health, but without guaranteed minimum pay, he’s forced to work 12 to 16 hours daily just to make ends meet.
“There are a lot of people here in the Eugene area that don’t own a car, and once the buses or the public transportation shuts down, we’re who they call,” Smith explains. “So we are an essential part of the workforce here.”
Smith’s experience echoes the calls from drivers nationwide, who have stepped up advocacy as cities and states begin adopting laws that mandate minimum pay and driver benefits.
Industry Pushback and Calls for Fair Wages
Unlike traditional taxi drivers, rideshare drivers often lack comprehensive regulations such as vehicle inspections, permitting, and background checks enforced at the local or state level. Advocates want to change that by requiring rideshare companies to provide benefits like paid sick leave, minimum wages, and workers’ compensation.
However, Uber and Lyft argue that raising minimum wages for drivers will inevitably raise ride costs for consumers. Both companies are actively lobbying and campaigning to block or weaken such legislation in multiple states.
Oregon State Senator Kayse Jama, who sponsored a bill to protect drivers, highlights another pressing issue: drivers losing access to their accounts without warning. Many affected drivers are immigrants or refugees who rely on rideshare driving as their primary income, not just a side job.
“A lot of those folks are mainly immigrants and refugees, so they don’t drive Uber as a side hustle or side gig,” Jama says. “This is their livelihood. This is how they feed their families. So, they brought the issue to my attention.”
Jama’s proposed law would establish a minimum wage for Oregon drivers, require “just cause” for account deactivations, guarantee sick leave, improve fare transparency, and set up a driver resource center—similar to legislation passed in neighboring Washington in 2022.
Uber opposes the bill, with spokesperson Zahid Arab testifying that it would make rides “dramatically more expensive for Oregon riders,” reduce affordable transport options, and limit flexible earning opportunities for drivers.
Jama remains in negotiations with the companies but stresses the need for a fair outcome that helps drivers get much-needed relief. “At the end of the day, we want a bill that’s equitable to both the parties but also ensures that the drivers are getting the relief that they desperately need,” he says.
Lockouts and Regulatory Battles Nationwide
Account “lockouts,” where drivers suddenly lose access to their apps, are not unique to Oregon. In New York City, drivers reported similar disruptions last summer, coinciding with the city’s minimum wage regulations for rideshare drivers. While Uber reached an agreement with the city to reduce lockouts, Lyft drivers continued facing deactivations.
Rideshare companies declined to comment on these issues.
Minimum Pay Laws Expanding Across States
Rideshare drivers typically earn a base fare plus additional pay based on distance and time, but rates and regulations vary widely. Some areas like Washington state have set minimum pay standards—currently $1.34 per mile and 39 cents per minute, with a $3.45 trip minimum—and Seattle’s rates are even higher.
Where no rules exist, driver earnings are often unpredictable and eaten up by expenses such as gas and vehicle upkeep.
New York City was the first U.S. jurisdiction to implement a minimum wage for rideshare drivers in 2019, resulting in about $17.22 per hour after expenses—a landmark victory for driver advocates. Seattle followed in 2020, and in 2023, Minneapolis debated similar wage hikes, although Uber and Lyft threatened to pull out of the city if such laws were passed.
Eventually, Minnesota reached a statewide deal in 2024, increasing pay to $1.28 per mile and 31 cents per minute, while banning cities from enacting their own wage rules.
States like California, Massachusetts, and Washington have also passed laws establishing minimum wages and benefits over recent years. Massachusetts secured an agreement last year guaranteeing drivers minimum earnings starting at $32.50 per hour, creating a portable health insurance fund, and rolling out multilingual support.
Besides wages, Massachusetts, Minnesota, New York, and Washington require paid sick leave, workers’ compensation and family leave for rideshare drivers.
In contrast, a 2023 California appeals court ruling upheld a law allowing companies to classify drivers as independent contractors, denying them benefits.
This year, Connecticut and Wisconsin lawmakers introduced bills to improve pay transparency and provide insurance coverage for rideshare drivers.
Uber sued Colorado over a 2024 law requiring pay disclosure for drivers, claiming it infringed on free speech rights. The law mandates companies reveal how much passengers pay, what drivers earn, and the tip amounts.
Washington’s Ongoing Fight for Fairness
Ahmed Mahamud, a full-time Uber and Lyft driver in Seattle for over eight years, appreciates the flexible income and the chance to help his community.
“I love it,” Mahamud says. “You’re helping people when they have a need. So, this isn’t just a job. It’s a ‘win-win’ job. You’re helping your community, and at the same time you are paying the bills.”
Yet, like many drivers, he lacks traditional job benefits, prompting him to join the Drivers Union and continue pushing for better pay and protections.
“We are not yet finished fighting against these companies because there are still things missing,” he says. “So, every single day, we are still fighting.”
Without clear state or federal laws, rideshare companies hold disproportionate power over drivers. Anna Minard of the Drivers Union says Washington drivers began organizing when Uber and Lyft changed pay structures without notice—sparking fears of exploitation.
“To drivers, this seemed like an avenue for a lot of exploitation,” Minard explains. “So, drivers organized from the get-go and tried various ways to get some rights enshrined in the law [in Washington]. Even though it’s contract work, people felt like they should be able to join together and fight for better pay and benefits and safety.”
In 2023, Washington became the first state to grant paid family and medical leave to rideshare drivers—a compromise supported by Uber and Lyft. An Uber spokesperson called it a “true compromise” balancing new benefits with driver flexibility.
Last year, Uber’s chief legal officer Tony West expressed hopes to work with other regions to create similar solutions after Massachusetts passed benefits laws now rolling out in 2025.
A recent Washington law also forces rideshare companies to be transparent about which cars qualify for premium ride options that cost passengers more.
Drivers had complained about being pushed to buy pricier vehicles for higher pay, only to be cut from those categories once newer models arrived, leaving them stuck with costly car payments without extra earnings.
“The drivers came together and said, ‘This is just unfair,’” Mahamud says. “Yesterday we were told to buy these cars, and then before we can pay the car off, we’re taken out of the product class which was supposed to pay for it.”
The law now also requires trip receipt records to be provided to drivers.
The Ongoing Struggle for Driver Rights
Nicole Moore, president of Rideshare Drivers United and a part-time Los Angeles driver, believes the fight for fair treatment isn’t over.
“They (rideshare companies) think that to be an employee in America means you have to work full time, and it has to be a scheduled five-day workweek,” Moore explains. “Now, we as Americans have all these misconceptions about what employment rights and labor rights could mean for everyone.”
As advocacy grows, rideshare drivers continue pushing for recognition and protections that fit their unique roles in the economy.
Source: Colorado Newsline
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