Independent contractor drivers in Seattle who work for the same company can now pursue unionization under a new law unanimously approved by the Seattle City Council on Monday. The bill focuses on online ride-sharing platforms such as Uber and Lyft as well as taxi companies.

Experts say the new rule adds to the patchwork of rules and regulations that users of independent contractors must follow.

“This is just another example of how current state and federal labor laws do not keep pace with the new innovative labor models that are becoming commonplace in the 21st century economy,” said Bryan Peña, VP, Contingent Workforce Strategies and Research at Staffing Industry Analysts.

“Unfortunately we can expect more and more local activist governments to similarly address the perceived exploitation of independent contractors and freelancers with these sorts of laws in lieu of state or federal action,” Peña said. “Companies that rely on these types of contingent workers will be forced to deal with a patchwork of rules and regulations that may make some types of work arrangements simply too cumbersome to consider.” 

According to the city of Seattle, it will certify organizations as eligible driver representative organizations. Such organizations will be able to receive lists of eligible drivers from companies such as Uber and Lyft in order to organize the workers. The city would review any collective bargaining agreements.

“We’ve heard from Seattle drivers making sub-minimum wage, and companies like Uber have turned a deaf ear to their concerns,” said City Council Member Mike O’Brien, who co-sponsored the legislation with Council Member Nick Licata. “This bill was only introduced out of necessity after witnessing how little power drivers themselves had in working for a living wage. This is groundbreaking legislation, and I am proud Seattle is continuing to lead the nation in advancing labor standards for our workers.”