Bill Would Require Minimum Pay, Comp Cover for Uber, Lyft Drivers

Why It Matters

The bill could raise operating costs for ride‑hailing firms while guaranteeing a baseline income and safety net for drivers, reshaping the gig‑economy labor model in Ohio and potentially influencing other states.

Key Takeaways

• Ohio bill classifies TNC drivers as employees for workers comp.
• Minimum pay set at $5.17 per trip in cities over 600k residents.
• Companies must pay quarterly insurance premiums based on driver platform time.
• Drivers receive electronic receipts, weekly summaries, and protection from retaliation.

Pulse Analysis

The rapid growth of ride‑hailing platforms has sparked a nationwide debate over how drivers should be classified. While companies like Uber and Lyft argue that drivers are independent contractors, many state legislatures are pushing back with employee‑style protections. Ohio’s H.B. 840 joins a wave of proposals that seek to extend workers‑compensation coverage to drivers during the moments they are actively transporting passengers or en route to pick them up. By anchoring liability to the same periods that generate revenue, the bill targets a narrow but critical slice of gig work.

Beyond insurance, the bill sets concrete pay floors that take effect in 2027. In metropolitan areas with populations above 600,000, drivers must receive at least 59 cents per passenger‑platform minute plus $1.38 per mile, or a flat $5.17 per trip—whichever is higher. Outside those cities, the floor drops to 34 cents per minute, $1.17 per mile, or $3 per trip. These rates, combined with mandatory electronic receipts and weekly summaries, aim to provide transparent earnings and protect tips from unlawful deductions, potentially boosting driver retention.

Compliance will be overseen by the Ohio Department of Commerce, which can levy civil penalties for unpaid compensation, illegal deductions, or retaliation against drivers who file complaints. The quarterly premium requirement, calculated on total platform time, mirrors taxicab industry standards and could add a measurable cost burden to TNCs operating in the state. If upheld, Ohio’s framework may serve as a template for other jurisdictions wrestling with gig‑worker rights, prompting ride‑hailing firms to reassess business models and negotiate new cost structures nationwide.