A bill to amend Seattle’s App-Based Worker Minimum Payment Ordinance has cleared a council committee and is now awaiting a final vote.
Proposed Council Bill 120775 aims to make changes to the current minimum wage law. These changes would eliminate minimum wage adjustments, decrease the per-mile rate, and remove the mileage factor. If passed, the bill would establish a new minimum payment standard of $19.97 per hour, in addition to 35 cents per mile for engaged time while driving. Excluding tips from the minimum payment is standard practice.
The bill does not eliminate the minimum wage for gig workers, which remains at a guaranteed gross minimum wage of $19.97 per hour. The initial “PayUp” ordinance established a minimum wage of $26.40 per hour for delivery drivers, excluding tips.
The current ordinance mandates a minimum payment of 44 cents per minute and 74 cents per mile for the time spent and miles travelled by network companies.
The Governance, Accountability, and Economic Development Committee has given its approval to Council Bill 120775, with four votes in favour and one abstention.
The bill is being sponsored by Seattle City Councilmember Sara Nelson.
“This law is clearly ineffective,” Nelson stated during Thursday’s committee meeting. The Council Bill 120775 aims to address the negative consequences resulting from a problematic law and the introduction of a new regulatory fee by network companies, which has led to a decline in customer orders.
Nelson is discussing the regulatory fees that app-based delivery services have implemented in compliance with a recently enacted law on Jan. 13. The increase in costs has led to a significant decrease in the number of orders placed with these services.
As previously reported by The Centre Square, data from DoorDash has shown that city retailers have earned approximately $7 million less than expected in a six-week period following the implementation of the law earlier this year.
Drivers expressed their opinions on the proposed changes during Thursday’s public comment period, which lasted for an hour and a half.
The bill is scheduled for a final city council vote on May 28th.
