The US Chamber of Commerce sued the city of Seattle on Thursday over an ordinance that allows drivers of ride-hailing apps Uber and Lyft to unionize, saying it violates federal antitrust laws.
Seattle last year became the first US 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.