A report from Common Sense Institute Oregon looks at how reclassifying rideshare drivers as employees in the state could affect jobs, ride prices, and driver pay.
The analysis considers proposed policy changes that would shift rideshare drivers from independent contractors to employee status. It examines how Oregon’s regulatory approach could shape the experiences of drivers who depend on gig work as a primary income source or for supplemental earnings, and evaluates how a move toward more traditional employment structures could affect flexibility, pay, and participation in rideshare work.
An earlier statewide bill, SB 1166, didn’t pass, but now Portland is considering a city-wide take rate that could impact how much drivers make and how platforms operate. Throughout, the report keeps the perspective of gig workers front and center—people who depend on rideshare income while juggling rising living costs, vehicle expenses, and the ups and downs of ride demand, according to Common Sense Institute Oregon.
Researchers at Common Sense Institute Oregon analyzed the potential economic impact of classifying rideshare drivers as employees rather than independent contractors. Their findings suggest that even if wages increased by roughly 15 percent, the change could still lead to an estimated 4,179 job losses across the state. The report also projects broader effects, including a $383 million decline in Oregon’s gross domestic product and a $326 million drop in statewide personal income, highlighting how such a policy could reshape both the gig economy and the overall labor market.
The research also highlights the financial pressures many rideshare drivers face. While average hourly earnings in Oregon are estimated at around $22, this figure does not include essential expenses like fuel, vehicle maintenance, insurance, and depreciation. After accounting for these costs, drivers’ actual take-home pay can be much lower, illustrating the challenges of maintaining steady earnings through gig work, particularly in higher-cost cities such as Portland, according to the institute.Â
Common Sense Institute is a nonprofit organization that conducts economic research and policy analysis, specializing in state-level fiscal and labor matters. The institute is based in Colorado and maintains regional offices in Oregon, according to the institute.
