Seattle Passes Minimum Pay Rate for Uber and Lyft Drivers

The Seattle City Council approved a minimum pay standard for Uber and Lyft drivers on Tuesday, becoming the second city in the country to do so.

Under the law, effective in January, ride-hailing companies must pay a sum roughly equivalent, after expenses, to the city’s $16 minimum hourly wage for businesses with more than 500 employees.

“The pandemic has exposed the fault lines in our systems of worker protections, leaving many frontline workers like gig workers without a safety net,” Mayor Jenny Durkan said in a statement.

Seattle’s law, passed in a 9-to-0 vote, is part of a wave of attempts by cities and states to regulate gig-economy transportation services. It is modeled on a measure that New York City passed in 2018. Last year, California approved legislation effectively requiring Uber and Lyft to classify drivers as employees rather than independent contractors, which would assure them of protections like a minimum wage, overtime pay, workers’ compensation and unemployment insurance. The companies are backing an initiative on the November ballot that would exempt their drivers from the California law.

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