Seattle Law Mandating Higher Delivery Driver Pay Is a Disaster
17th March 2024
In 2022, Seattle’s City Council passed an ordinance mandating a minimum earnings floor for app-based food delivery drivers in the city. The law finally went into effect in January 2024, but so far the main result has been customers deleting their delivery apps en masse, food orders plummeting, and driver pay cratering.
The ordinance, part of a legislative package called “PayUp,” was passed under the banner of protecting gig workers. By setting a compensation floor for app-based delivery drivers based on miles driven and amount of time worked, the ordinance operates as a (supremely complicated) minimum wage.
The wage floor is based on labyrinthine calculations: the “engaged minutes” for drivers are multiplied by a “minimum wage equivalent rate,” which is then multiplied again by an “associated cost factor” and then multiplied yet again by an “associated time factor.” Next, this sum is added to the total of “engaged miles” of drivers, multiplied by the “standard mileage rate” and then multiplied once more by the “associated mileage factor.” (If you’re lost, don’t worry—the text of the ordinance itself literally does the math for you).