The new Pay Up law in Seattle requires companies that employ gig workers to guarantee they are paid at least $17.25 an hour, part of a larger movement to provide more security and stability to drivers and delivery workers.

For state and local governments looking for a way to protect gig workers from exploitation, Seattle’s new “Pay Up” law may offer a way forward. 

The law, passed May 31 by the Seattle City Council, requires app-based companies with 250 or more contract workers to provide a minimum income for gig workers, while not designating them as employees. In Seattle, that means they are entitled to $17.27 per hour. The law also mandates that companies pay the mileage rate set by the Internal Revenue Service to cover the cost of gas and wear-and-tear on vehicles. 

Seattle and New York City already had laws covering Uber and Lyft drivers. The new legislation applies to other gig workers, such as delivery drivers and workers affiliated with staffing apps such as Handy and Instawork.

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