On April 20, the Taxpayers Protection Alliance said that limited-government groups are urging Congress to update the Graves Amendment to provide uniform federal protections for ridesharing platforms against vicarious liability claims involving independent contractor drivers.
The group said inconsistent state laws have created varying standards of liability for rideshare companies, potentially exposing them to claims even when drivers operate as independent contractors.Â
According to the Taxpayers Protection Alliance, advocates are seeking a national standard aligned with existing protections for rental car companies while adapting to the peer-to-peer transportation model. The effort focuses on preempting a patchwork of state rules through federal action in the upcoming surface transportation reauthorization bill.
State-level reforms have already shaped how courts and insurers handle rideshare liability.
For example, in Florida, law classifies qualifying transportation network company drivers as independent contractors under certain conditions, including flexible scheduling and written agreements. The Third District Court of Appeal has also upheld rulings dismissing vicarious liability claims against Lyft. According to Faegre Drinker, tort reforms in the state have contributed to stabilization in the auto insurance market, with insurers filing for average rate decreases.
Other states have enacted statutes limiting vicarious liability for rideshare services. In some cases, companies cannot be held vicariously liable unless gross negligence is proven by clear and convincing evidence and statutory driver-screening requirements are not met. The American Tort Reform Association says such frameworks mirror federal protections for rental car companies while standardizing treatment of rideshare liability across states.
The Taxpayers Protection Alliance describes itself as a non-partisan nonprofit organization dedicated to educating the public through research and analysis on government spending and taxation’s effects on the economy. It holds policymakers accountable for policies that expand government size while promoting solutions aimed at reducing deficits and debt.
