Lyft, Uber Washington Drivers Get Benefits, No Employee Status

Drivers for rideshare companies such as Lyft Inc. and Uber Technologies Inc. will be guaranteed minimum per-trip pay rates, paid sick leave, and workers’ compensation without being deemed employees, under a new Washington state law.

The measure, HB 2076, which Gov. Jay Inslee (D) signed into law Thursday, reflects a compromise among rideshare companies, drivers, and the Teamsters-affiliated Drivers Union—ensuring the companies can classify drivers as independent contractors while requiring them to provide benefits traditionally reserved for employees.

But Teamsters leader Sean O’Brien, who recently took over as the union’s international president, opposed the legislation and urged Inslee to ...