New year marks increase of state’s minimum wage, raise for Seattle rideshare drivers

OLYMPIA, Wash. — January 1 marks the start of a new minimum wage in Washington, joining 20 other states that are making an increase.

The state minimum wage increased from $13.50 to $13.69 an hour.

Washington’s minimum wage now ranks as the third highest in the country.

Also new this year in Seattle only is an ordinance for rideshare drivers that says companies such as Uber and Lyft must pay a minimum wage that, after expenses, drivers make roughly the city’s minimum hourly wage for companies over 500 employees - about $16.69 per hour.

The law creates a formula for minimum compensation per trip, a combination of per-minute and per-mile rates. The formula is intended to keep drivers busier and have fewer cars on the road.

Specifically, the ordinance guarantees that drivers will be paid at least $0.56 per minute and $1.33 per mile driven while transporting passengers.

It also requires drivers are paid a minimum of $5 per trip.

Uber said as a result, riders will see fares increase by 24%. By May, fares in Seattle could catapult to as much as 50% higher.

Cox Media Group