Seattle Passes Bill Mandating Minimum Wage For Delivery Drivers

Seattle WA

01 June, 2022

2:35 PM

Description

SEATTLE — The Seattle City Council on Tuesday passed legislation to require app-based delivery services to ensure their workers receive at least minimum wage, in addition to tips and compensation for expenses. Council members unanimously passed the "PayUp" legislation after a year of meetings and hearings and pointed to a recent report from Working Washington that found the average Seattle gig worker received less than $10 an hour in net pay. Seattle's current minimum hourly wage for large employers is $17.27. The legislation will apply to many popular food delivery apps, like Uber Eats and DoorDash, requiring the companies to pay their drivers rates based on time and miles traveled, and the "pay floor" cannot include added tips. According to the council, the legislation is the first of its kind in the nation. "We live in an expensive city; many delivery workers earn below the minimum wage after expenses and tips are accounted for," said Councilmember Lisa Herbold, one of the bill's sponsors. "App-based work is one of the fastest growing sectors of our economy with more workers turning to this type of work. The passage of this legislation will help tens of thousands of delivery workers make ends meet while maintaining their flexibility." The legislation garnered widespread support from labor unions and worker advocacy groups, including Working Washington, Seattle Restaurants United and SEIU 775. Among its chief detractors was DoorDash, which added a pop-up "warning" to its website last month, encouraging its customers to speak out against the bill. On top of the pay guarantee, the legislation requires companies to increase transparency about how payments are split between workers and the apps. The final version of the legislation excluded "marketplace" apps, like Rover and TaskRabbit, which the council promised to revisit within the next year. Future planned additions to the "PayUp" package include legislation requiring better access to restrooms, anti-discrimination policies, deactivation protections and establishing a "gig worker advisory board."