(photo courtesy of The Seattle Channel)
The Seattle City Council has passed an ordinance to require app-based food delivery and other service companies to pay workers a minimum wage.
The measure calls for paying workers for companies, like DoorDash, Uber Eats or InstaCart a 39-cent a minute minimum wage equivalent rate that would also cover associated costs, like payroll taxes and workers’ comp. It also comes with a 79-cent per-mile rate for driving and time required to get to and from the work locations while not actually performing the task as gas prices continue to climb.
Council member Sara Nelson said she supports a minimum wage for drivers as she echoed the concerns raised by the app companies. “I’ve always been concerned that setting the per-delivery fee too high will lower demand,” Nelson says, “which could result in the unintended consequences of reducing drivers’ overall income as well as the revenue of small businesses, like restaurants.” Many drivers say rising costs and diminishing pay make it nearly impossible to eke out a living.
The council voted unanimously to pass the ordinance, but it will be a while before the drivers see the results because the city has 18 months to write the rules for implementation and enforcement of the ordinance.
