The U.S. Chamber of Commerce is suing the city of Seattle over an ordinance that allows drivers of ridesharing apps Uber and Lyft to unionize, saying it violates federal antitrust laws.
Seattle last year became the first U.S. city to pass a law giving drivers for companies such as Uber and Lyft, as well as taxi and for-hire drivers, the right to collectively negotiate on pay and working conditions.
City officials took action amid growing concerns about how drivers are compensated. Both Uber and Lyft vigorously opposed the measure, arguing that existing federal labor law trumps local legislation.
The chamber, a federation of more than 3 million businesses, is the newest entry into the growing legal battle being waged by numerous factions in courts across the United States over whether the drivers are independent contractors or employees, and what sort of benefits and rights they should have.
The chamber is seeking to have the law suspended.
The ordinance was approved unanimously by the city council but opposed by Seattle Mayor Ed Murray.
The chamber also argues that Seattle cannot make a determination about the employment status of drivers before the National Labor Relations Board makes a decision on the issue. The NLRB is reviewing at least four cases and is expected to make a blanket decision concerning their status.
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