Seattle City Council Sets Minimum Wage for Gig Workers

Allen Smith, J.D. By Allen Smith, J.D. June 1, 2022
LIKE SAVE
A moped driver about to make a DoorDash delivery

​Seattle's City Council adopted a minimum wage for app-based delivery drivers May 31, becoming the first U.S. city to pass such a measure. We've gathered articles on the news from SHRM Online and other media outlets.

Bill Takes Effect in 2023

The "Pay Up" bill will set the minimum wage for the workers in accordance with the city's rate of $17.27 per hour and will take effect in 2023. "We live in an expensive city; many delivery workers earn below the minimum wage after expenses and tips are accounted for," Lisa Herbold, a council member supporting the bill, said in a statement. "The passage of this legislation will help tens of thousands of delivery workers make ends meet."

(Insider)

Other Bill Requirements

The bill also creates transparency for app-based companies, requiring them to share information upfront on pay, tips and details of each job. In addition, it prevents companies from penalizing workers based on the shifts and jobs that they accept.

(GeekWire)

Bill's Limits

While the bill applies to delivery apps like DoorDash, Uber Eats and Instacart, it doesn't apply to workers who take jobs on such apps as Rover or TaskRabbit. Drivers for ride-hailing apps such as Uber and Lyft are covered by different legislation that was approved by the council in 2019.

(Axios Seattle)

Companies Oppose Efforts to Reclassify Gig Workers as Employees

Uber Technologies and Lyft Inc. have launched a media campaign opposing legislative efforts to classify their workers as employees nationwide. The federal proposal is based on a law in California that resulted in the reclassification of numerous independent contractors as employees.

(SHRM Online)

DoorDash Statement

DoorDash stated that, "Seattle City Council refused to hear from community members—from restaurants to customers, to faith leaders, to communities of color—who opposed this extreme policy that will dramatically increase costs on customers, reduce orders for merchants and threaten earnings for Dashers. [The] city council also refused to study the impact of this proposal, despite widespread constituent concern."

(Fox 13)

LIKE SAVE

SHRM HR JOBS

Hire the best HR talent or advance your own career.

SHRM’s SMALL-BUSINESS LEGAL RESOURCE

SHRM LegalNetwork members can quickly connect with attorneys on an unlimited number of topics for a low monthly fee.

SHRM LegalNetwork members can quickly connect with attorneys on an unlimited number of topics for a low monthly fee.

LEARN MORE

SPONSOR OFFERS

HR Daily Newsletter

News, trends and analysis, as well as breaking news alerts, to help HR professionals do their jobs better each business day.