Legislation concerning transportation network companies and their drivers’ rights was heard in the House Labor & Workplace Standards Committee and was amended with significant preemptions for cities. Transportation network companies (TNCs) are business entities that match passengers with drivers via websites and mobile apps, also known as rideshare apps.

HB 2076, from Rep. Liz Berry(D–Seattle), seeks to provide drivers of TNCs with paid sick leave, Paid Family Medical Leave, and industrial insurance. The bill also seeks to create uniform statewide regulations of TNCs and establish a fund for a Driver Resource Center (DRC) to support drivers in resolving disputes related to deactivations.

Certain amendments adopted in committee could be of concern to cities. They allow the state to preempt the field of regulating TNCs and drivers and provide that no local government may impose any tax, fee, or other charge on TNCs or drivers, with the following exceptions:

• A local ordinance (in existence before the bill goes into effect) that imposes a tax, fee, or surcharge on a TNC would remain in effect, but the city could not increase it or impose a new one;
• A local ordinance (in existence before the bill goes into effect) that imposes a per-trip tax, fee, or surcharge for the purposes of funding a driver conflict resolution center may continue to collect on it but must reduce it by 15 cents;
• A local ordinance (in existence before the bill goes into effect) that regulates licensing, permitting, and processing applications of TNCs and drivers would remain in effect but any amendments to those local ordinances must be in conformance with the statewide regulatory standards established in the bill;
• A TNC with a state-approved agreement with a DRC is deemed to satisfy all obligations under any local ordinance related to compensation and deactivation requirements established in the bill. Local ordinances related to wages and working conditions that are not already preempted do not apply to a TNC as long as the agreement is in effect; and
• Local ordinances related to requirements in the bill regarding compensation, paid sick leave, paid family medical leave, and workers’ compensation are preempted.

AWC believes this bill could impact current city ordinances and is soliciting feedback from members on the updated language. If your city has comments, please email or call Brandy DeLange.

HB 2076, as amended, passed out of committee with a narrow margin and awaits further action in the House.