According to the ruling the timing of the lawsuit was too early since Seattle’s ordinance had yet to take effect.

In a significant development in the history of ride sharing companies, a federal judge has dismissed a lawsuit against the city of Seattle over a landmark law which allows Uber and Lyft drivers to unionize.

In 2015, Seattle passed a law that gave drivers for ride hailing apps such as Lyft and Uber, as well as taxi and for-hire drivers, the right to collectively negotiate their pay and working conditions.

That litigation had unfolded midst a national debate over the levels of benefits due to so-called “gig economy.” Workers.

As expected, both Lyft and Uber had vigorously opposed the measure, arguing that existing federal labour law supersedes local legislation.

Earlier this year in March, the U.S. Chamber of Commerce, filed a lawsuit asking a Seattle federal judge to suspend the ordinance.

The outcome of this lawsuit occurred yesterday with U.S. District Judge Robert Lasnik siding with city officials. As per her ruling, the timing of the lawsuit was too early since the ordinance had not taken effect. Additionally, it said the federation of more than 3 million business did not have any locus standee, since it was not directly impacted.

“Neither of the Chambers’ members has suffered an injury that is traceable to the Ordinance and would be redressed if the Ordinance were declared invalid or enforcement were otherwise enjoined,” wrote Lasnik in an 8-page opinion. “Thus, the Chamber itself has no standing to pursue the claims asserted in this litigation.”

The U.S. Chamber of Commerce had argued saying since Uber is one of its members, it has standing and moreover since the city had concrete plans to begin the implementation of the law this year, it isn’t too early.

In a statement, the U.S Chamber of Commerce said, the ruling only “delayed coming to grips with the legal flaws at the heart of this ordinance. While the judge held that it is too early to decide this case, he made clear at oral argument that he stands ready to hear a challenge to Seattle’s unprecedented ordinance in the future”.

Seattle’s ordinance was approved unanimously by the city council but was opposed by Mayor Ed Murray.

The Teamsters union was also in its favour.

Categories: Entrepreneurship, HR & Organization, Regulations & Legal, Strategy, Uncategorized

Tags: Top, Seattle ordinance, ride sharing, ride hailing, gig economy, unionizing, benefit levels, workers, taxi, drivers, Uber, Lyft, federal labour law, Chamber of Commerce, Judge Robert Lasnik, Mayor Ed