Tina Bellon

(Reuters) – On Thursday, Jay Inslee, Washington governor signed a law establishing a minimum wage standard for Uber (NYSE :). Lyft (NASDAQ) Drivers across Northwestern (NASDAQ) State, first U.S. state to implement industry-wide standards for ride-hail earnings.

Washington drivers, except Seattle, will be paid a minimum $1.17/mile and $0.34/minute with a minimum wage of $3 per journey.

Drivers will be entitled to long-term and paid medical leave as well as workers’ compensation. This is an American government mandated program which provides workers with benefits if they are hurt or become ill while on the job. Drivers can appeal against being removed from these apps.

Seattle passed its ride-hail standard in September 2020. Drivers will still earn minimum rate of $1.38/mile and $0.59/minute at $5.17/trip.

Lyft and Uber supported this law. The law also eliminates the local regulatory power. This prohibits cities or counties from adding additional requirements to companies.

The document also states that drivers who ride hail cars aren’t employees. This is a controversial issue for some gig economy companies like Uber and Lyft.

The gig firms, which employ workers as contractors independently, are opposed to any reclassification, while other labor organizations argue that drivers should have access to better benefits.

Ramona Prieto from Uber, head of Western U.S. policy, stated in a statement that “this new law decisively allows drivers what they desire – stay independent while gaining historic benefits and protections.” Uber executives hoped that the law would be replicated in other countries, states, and cities.

Teamsters Local 117 supports the Washington law. This union was instrumental in pushing for Seattle’s pay standard.

Only New York City and Seattle have established minimum wage standards for ride-hail drivers in the United States.