CERTIFICATION OF ENROLLMENT
ENGROSSED SUBSTITUTE HOUSE BILL 2076
Chapter 281, Laws of 2022
(partial veto)
67th Legislature
2022 Regular Session
TRANSPORTATION NETWORK COMPANIES
EFFECTIVE DATE: June 9, 2022—Except for sections 8 through 13, which
take effect January 1, 2023; and sections 17 and 28, which take
effect March 1, 2023.
Passed by the House March 7, 2022 CERTIFICATE
Yeas 56 Nays 42
I, Bernard Dean, Chief Clerk of the
House of Representatives of the
LAURIE JINKINS State of Washington, do hereby
Speaker of the House of certify that the attached is
Representatives ENGROSSED SUBSTITUTE HOUSE BILL
2076 as passed by the House of
Representatives and the Senate on
the dates hereon set forth.
Passed by the Senate March 4, 2022
Yeas 40 Nays 8
BERNARD DEAN
DENNY HECK Chief Clerk
President of the Senate
Approved March 31, 2022 4:48 PM with FILED
the exception of section 16, which is
vetoed. April 1, 2022
Secretary of State
JAY INSLEE State of Washington
Governor of the State of Washington
ENGROSSED SUBSTITUTE HOUSE BILL 2076
AS AMENDED BY THE SENATE
Passed Legislature - 2022 Regular Session
State of Washington 67th Legislature 2022 Regular Session
By House Labor & Workplace Standards (originally sponsored by
Representatives Berry, Simmons, Kloba, Bergquist, Pollet, Kirby,
Bronoske, Fitzgibbon, Ryu, and Macri)
READ FIRST TIME 02/03/22.
1 AN ACT Relating to rights and obligations of transportation
2 network company drivers and transportation network companies;
3 amending RCW 49.46.210, 51.12.020, 51.08.070, 51.08.180, 51.16.060,
4 and 48.177.010; adding new sections to chapter 49.46 RCW; adding a
5 new section to chapter 51.16 RCW; adding a new section to chapter
6 51.04 RCW; adding a new chapter to Title 46 RCW; creating a new
7 section; recodifying RCW 48.177.010; and providing effective dates.
8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
9 PART I
10 COMPENSATION, DEACTIVATION, AND DRIVER RESOURCE CENTER
11 NEW SECTION. Sec. 1. A new section is added to chapter 49.46
12 RCW to read as follows:
13 (1) The definitions in this subsection apply throughout this
14 section and sections 2 through 5 and 7 of this act unless the context
15 clearly requires otherwise.
16 (a) "Account deactivation" means one or more of the following
17 actions with respect to an individual driver or group of drivers that
18 is implemented by a transportation network company and lasts for more
19 than three consecutive days:
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1 (i) Blocking access to the transportation network company driver
2 platform;
3 (ii) Changing a driver's status from eligible to provide
4 transportation network company services to ineligible; or
5 (iii) Any other material restriction in access to the
6 transportation network company's driver platform.
7 (b) "Compensation" means payment owed to a driver by reason of
8 providing network services including, but not limited to, the minimum
9 payment for passenger platform time and mileage, incentives, and
10 tips.
11 (c) "Department" means the department of labor and industries.
12 (d) "Digital network" means any online-enabled application,
13 website, or system offered or used by a transportation network
14 company that enables the prearrangement of rides between drivers and
15 passengers.
16 (e) "Director" means the director of the department of labor and
17 industries.
18 (f) "Dispatch location" means the location of the driver at the
19 time the driver accepts a trip request through the driver platform.
20 (g) "Dispatch platform time" means the time a driver spends
21 traveling from a dispatch location to a passenger pick-up location.
22 Dispatch platform time ends when a passenger cancels a trip or the
23 driver begins the trip through the driver platform. A driver cannot
24 simultaneously be engaged in dispatch platform time and passenger
25 platform time for the same transportation network company. For shared
26 rides, dispatch platform time means the time a driver spends
27 traveling from the first dispatch location to the first passenger
28 pick-up location.
29 (h) "Dispatched trip" means the provision of transportation by a
30 driver for a passenger through the use of a transportation network
31 company's application dispatch system.
32 (i) "Driver" has the same meaning as "commercial transportation
33 services provider driver" in RCW 48.177.005. Except as otherwise
34 specified in this act, for purposes of this title and Titles 48, 50A,
35 50B, and 51 RCW, and any orders, regulations, administrative
36 policies, or opinions of any state or local agency, board, division,
37 or commission, pursuant to those titles, a driver is not an employee
38 or agent of a transportation network company if the following factors
39 are met:
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1 (i) The transportation network company does not unilaterally
2 prescribe specific dates, times of day, or a minimum number of hours
3 during which the driver must be logged into the transportation
4 network company's online-enabled application or platform;
5 (ii) The transportation network company may not terminate the
6 contract of the driver for not accepting a specific transportation
7 service request;
8 (iii) The transportation network company does not contractually
9 prohibit the driver from performing services through other
10 transportation network companies except while performing services
11 through the transportation network company's online-enabled
12 application or platform during dispatch platform time and passenger
13 platform time; and
14 (iv) The transportation network company does not contractually
15 prohibit the driver from working in any other lawful occupation or
16 business.
17 Notwithstanding any state or local law to the contrary, any party
18 seeking to establish that the factors in this subsection (1)(i) are
19 not met bears the burden of proof. A driver for purposes of this
20 section shall not include any person ultimately and finally
21 determined to be an "employee" within the meaning of section 2(3) of
22 the national labor relations act, 29 U.S.C. Sec. 152(3).
23 (j) "Driver platform" means the driver-facing application
24 dispatch system software or any online-enabled application service,
25 website, or system, used by a driver, or which enables services to be
26 delivered to a driver that enables the prearrangement of passenger
27 trips for compensation.
28 (k) "Driver resource center" or "center" means a nonprofit
29 organization that provides services to drivers. The nonprofit
30 organization must be registered with the Washington secretary of
31 state, have organizational bylaws giving drivers right to membership
32 in the organization, and have demonstrated experience: (i) Providing
33 services to gig economy drivers in Washington state, including
34 representing drivers in deactivation appeals proceedings; and (ii)
35 providing culturally competent driver representation services,
36 outreach, and education. The administration and formation of the
37 driver resource center may not be funded, excessively influenced, or
38 controlled by a transportation network company.
39 (l) "Driver resource center fund" or "fund" means the dedicated
40 fund created in section 2 of this act, the sole purpose of which is
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1 to administer funds collected from transportation network companies
2 to provide services, support, and benefits to drivers.
3 (m) "Network services" means services related to the
4 transportation of passengers through the driver platform that are
5 provided by a driver while logged in to the driver platform,
6 including services provided during available platform time, dispatch
7 platform time, and passenger platform time.
8 (n) "Passenger" has the same meaning as "commercial
9 transportation services provider passenger" in RCW 48.177.005.
10 (o) "Passenger drop-off location" means the location of a
11 driver's vehicle when the passenger leaves the vehicle.
12 (p) "Passenger pick-up location" means the location of the
13 driver's vehicle at the time the driver starts the trip in the driver
14 platform.
15 (q) "Passenger platform miles" means all miles driven during
16 passenger platform time as recorded in a transportation network
17 company's driver platform.
18 (r) "Passenger platform time" means the period of time when the
19 driver is transporting one or more passengers on a trip. For shared
20 rides, passenger platform time means the period of time commencing
21 when the first passenger enters the driver's vehicle until the time
22 when the last passenger exits the driver's vehicle.
23 (s) "Personal vehicle" has the same meaning as "personal vehicle"
24 in RCW 48.177.005.
25 (t) "Shared ride" means a dispatched trip which, prior to its
26 commencement, a passenger requests through the transportation network
27 company's digital network to share the dispatched trip with one or
28 more passengers and each passenger is charged a fare that is
29 calculated, in whole or in part, based on the passenger's request to
30 share all or a part of the dispatched trip with one or more
31 passengers, regardless of whether the passenger actually shares all
32 or a part of the dispatched trip.
33 (u) "Tips" means a verifiable sum to be presented by a passenger
34 as a gift or gratuity in recognition of service performed for the
35 passenger by the driver receiving the tip.
36 (v) "Transportation network company" has the same meaning as
37 defined in RCW 46.04.652. A transportation network company does not
38 provide for hire transportation service.
39 (2) A driver is only covered by this section to the extent that
40 the driver provides network services within the state of Washington.
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1 (3)(a) A transportation network company is covered by this
2 section if it provides a driver platform within the state of
3 Washington.
4 (b) Separate entities that form an integrated enterprise are
5 considered a single transportation network company under this
6 section. Separate entities will be considered an integrated
7 enterprise and a single transportation network company where a
8 separate entity controls the operation of another entity. Factors to
9 consider include, but are not limited to, the degree of interrelation
10 between the operations of multiple entities; the degree to which the
11 entities share common management; the centralized control of labor
12 relations; the degree of common ownership or financial control over
13 the entities; and the use of a common brand, trade, business, or
14 operating name.
15 (4)(a) Beginning December 31, 2022, a transportation network
16 company shall ensure that a driver's total compensation is not less
17 than the standard set forth in (a)(i), (ii), or (iii) of this
18 subsection (4).
19 (i) For all dispatched trips originating in cities with a
20 population of more than 600,000, on a per trip basis the greater of:
21 (A) $0.59 per passenger platform minute for all passenger
22 platform time for that trip, and $1.38 per passenger platform mile
23 for all passenger platform miles driven on that trip; or
24 (B) A minimum of $5.17 per dispatched trip.
25 (ii) For all other dispatched trips, the greater of:
26 (A) $0.34 per passenger platform minute and $1.17 per passenger
27 platform mile; or
28 (B) A minimum of $3.00 per dispatched trip.
29 (iii) For all trips originating elsewhere and terminating in
30 cities with a population of more than 600,000:
31 (A) For all passenger platform time spent within the city on that
32 trip and for all passenger platform miles driven in the city on that
33 trip the compensation standard under (a)(i) of this subsection
34 applies.
35 (B) For all passenger platform time spent outside the city on
36 that trip and for all passenger platform miles driven outside the
37 city on that trip the compensation standard under (a)(ii) of this
38 subsection applies.
39 (b) Beginning September 30, 2022, and on each following September
40 30th, the department shall calculate adjusted per mile and per minute
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1 amounts and per trip minimums by increasing the current year's per
2 mile and per minute amounts and per trip minimums by the rate of
3 increase of the state minimum wage, calculated to the nearest cent.
4 The adjusted amount calculated under this section takes effect on the
5 following January 1st.
6 (c) For shared rides, the per trip minimums in (a)(i) and (ii) of
7 this subsection shall apply only to the entirety of the shared ride,
8 and not on the basis of the individual passenger's trip within the
9 shared ride.
10 (5)(a) For the purposes of this section, a dispatched trip
11 includes:
12 (i) A dispatched trip in which the driver transports the
13 passenger to the passenger drop-off location;
14 (ii) A dispatched trip canceled after two minutes by a passenger
15 or the transportation network company unless cancellation is due to
16 driver conduct, or no cancellation fee is charged to the passenger;
17 (iii) A dispatched trip that is canceled by the driver for good
18 cause consistent with company policy; and
19 (iv) A dispatched trip where the passenger does not appear at the
20 passenger pick-up location within five minutes.
21 (b) A transportation network company may exclude time and miles
22 if doing so is reasonably necessary to remedy or prevent fraudulent
23 use of the transportation network company's online-enabled
24 application or platform.
25 (6)(a) A transportation network company shall remit to drivers
26 all tips. Tips paid to a driver are in addition to, and may not count
27 towards, the driver's minimum compensation under this section.
28 (b) Amounts charged to a passenger and remitted to the driver for
29 tolls, fees, or surcharges incurred by a driver during a trip must
30 not be included in calculating compensation for purposes of
31 subsection (4) of this section.
32 (c)(i) Beginning January 1, 2023, except as required by law, a
33 transportation network company may only deduct compensation when the
34 driver expressly authorizes the deduction in writing and does so in
35 advance for a lawful purpose. Any authorization by a driver must be
36 voluntary and knowing.
37 (ii) Nothing in this section shall prohibit a transportation
38 network company from deducting compensation as required by state or
39 federal law or as directed by a court order.
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1 (iii) Neither the transportation network company nor any person
2 acting in the interest of the transportation network company may
3 derive any financial profit or benefit from any of the deductions
4 under this section. For the purposes of this section:
5 (A) Reasonable interest charged by the transportation network
6 company or any person acting in the interest of a transportation
7 network company, for a loan or credit extended to the driver, is not
8 considered to be of financial benefit to the transportation network
9 company or person acting in the interest of a transportation network
10 company; and
11 (B) A deduction will be considered for financial profit or
12 benefit only if it results in a gain over and above the fair market
13 value of the goods or services for which the deduction was made.
14 (7)(a) Beginning January 1, 2023, a transportation network
15 company shall provide each driver with a written notice of rights
16 established by this section in a form and manner sufficient to inform
17 drivers of their rights under this section. The notice of rights
18 shall provide information on:
19 (i) The right to the applicable per minute rate and per mile rate
20 or per trip rate guaranteed by this section;
21 (ii) The right to be protected from retaliation for exercising in
22 good faith the rights protected by this section; and
23 (iii) The right to seek legal action or file a complaint with the
24 department for violation of the requirements of this section,
25 including a transportation network company's failure to pay the
26 minimum per minute rate or per mile rate or per trip rate, or a
27 transportation network company's retaliation against a driver or