The Seattle City Council unanimously passed a minimum wage for Uber and Lyft drivers on Tuesday.
The law states that rideshare companies must pay a minimum wage that, after expenses, drivers make roughly the city’s minimum hourly wage for companies over 500 employees - about $16.39 per hour.
“The pandemic has exposed the fault lines in our systems of worker protections, leaving many front line workers like gig workers without a safety net. It is more important than ever that we add to the economic resilience of our community of drivers. The Fare Share plan guarantees that drivers will receive fair pay and can provide for themselves and their families,” Mayor Durkan said in a statement.
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.
Seattle is the second in the country to pass such a law.
The rules take effect in January.
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