Uber's 2014 Virginia Fight and What Changed for Drivers Since

I first wrote this in January 2015, when Uber was still fighting state regulators over whether it could operate at all. A lot of that has been settled. Here is what happened in Virginia, how the rest of the country followed, and what the fights are about now.

The Virginia episode, 2014

In June 2014 Virginia authorities sent Uber and Lyft cease-and-desist letters, telling them to stop operating until they had proper authority. Most accounts credit the DMV commissioner, Richard Holcomb; one outlet credited the attorney general’s office. The Washington Post later reported that Uber responded by mobilizing its riders, emailing users in the state and urging them to contact the official in charge, while also hiring lobbyists. That is what my original post summarized.

The outcome was a negotiated one. In early August 2014 Governor Terry McAuliffe and Attorney General Mark Herring announced an agreement that let both companies operate while the state worked out permanent rules, and there was no penalty for the two months they had ignored the order. Then the legislature acted: on February 17, 2015, McAuliffe signed Senate Bill 1025 and House Bill 1662, which set up DMV licensing for “transportation network companies”, and the law took effect July 1, 2015.

So the short version is that Uber won, but in the end it won a licensing system, not a free pass.

Other states: what happened to the places I mentioned

My 2015 post said Uber had a harder time in places like Nevada and Arizona. Both ended up with laws.

Nevada: Uber briefly operated in the fall of 2014 until a judge ordered it to stop because it wasn’t following taxi and limo rules. The legislature passed enabling legislation in spring 2015, and regulators approved permits for Uber and Lyft on September 14, 2015.
Arizona: In January 2015 the governor suspended investigations into drivers for the two companies. In April 2015 Governor Doug Ducey signed HB 2135, which created a regulatory framework with insurance minimums, background checks, vehicle inspections and a zero-tolerance drug and alcohol rule. His predecessor had vetoed a similar bill in 2014 over insurance concerns.

Across the country the pattern repeated. By 2018, Mobility Lab reported, every state except Oregon had at least some statewide rules for ride-hailing companies, and a number of states passed laws that stop cities from adding their own. I did not find a current state-by-state count, so don’t treat any list as final. The practical point for you is that the rules that apply to you depend on your state, and sometimes your city (New York City, for instance, has its own TLC licensing). Look up your state or city regulator before you drive, and see the requirements page.

Typical requirements in these laws: insurance coverage while you’re driving, background checks, vehicle inspections and drug and alcohol rules. The details differ, and the company’s own rules (like those on Lyft’s page) often go beyond them.

The bigger fight now: employee or contractor

In 2015 the question was whether you could drive at all. In 2026 it is how drivers are classified and what protections come with that. In most places drivers are still independent contractors, but regulators and legislatures have attached a patchwork of protections.

California: Voters passed Proposition 22 in 2020, which keeps drivers as contractors but guarantees earnings of 120% of the minimum wage during engaged time. The California Supreme Court upheld it in July 2024. A 2025 law (AB 1340, signed in October 2025) created a path for drivers to unionize and bargain statewide while remaining contractors; a companion law (SB 371) reduced some uninsured-motorist coverage requirements, and critics say that shifts risk onto accident victims.
Massachusetts: In June 2024 Uber and Lyft settled with the attorney general for $175 million and agreed to a $32.50 an hour floor for time spent heading to pickups and with passengers, plus paid sick leave, occupational accident insurance and health care stipends.
Minnesota: A 2024 law, in effect since December 1, 2024, sets minimum pay of $1.28 per mile and $0.31 per minute while carrying riders, along with limits on deactivations. It replaced a higher Minneapolis rate.
New York City: The TLC sets minimum per-mile and per-minute pay for Uber and Lyft drivers and updates them yearly. In 2025 it also adopted rules aimed at curbing “lockouts,” requiring 72 hours’ notice before restricting a driver’s access.
Washington State: The legislature set minimum pay rates adjusted yearly for inflation, along with other protections.

Federal law is in flux. The Department of Labor’s 2024 independent contractor rule (a more worker-friendly test) has not been applied in investigations since a May 2025 field bulletin. On February 26, 2026, the DOL proposed rescinding it and going back to a test centered on control and the worker’s opportunity for profit or loss; the comment period closed April 28, 2026, and as of October 9, 2026 the final rule had reportedly been sent to the White House for review. I couldn’t find it published. This is a general FLSA rule, so for rideshare drivers state laws like the ones above matter more.

What this means for you: a “pay floor” generally covers engaged time, not the time you wait between rides, and being a contractor means you still pay your own costs and self-employment tax. Check how your state treats you, and use the profit calculator to find out whether the work pays. For real hourly figures, see what drivers earn now.

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