On April 25th, the Seattle City Council’s Governance, Accountability & Economic Development Committee initiated discussions on Council President Sara Nelson’s proposal to rewrite the PayUp law, which establishes minimum compensation standards for app-based workers.
The existing law, which came into effect on January 13, mandates that app-based workers receive $26.40 per hour in compensation and $.74 per mile driven for deliveries. Almost immediately after its implementation, drivers started attending City Council meetings to urge its repeal. They cited a significant decline in orders, leading to reduced earnings. Restaurants echoed this sentiment, reporting a 30-40% decrease in to-go orders.
In response to these concerns, Council President Nelson engaged with restaurants, drivers, delivery companies, and Drive Forward, an advocacy organization representing drivers. Her proposed legislation seeks to set the minimum compensation at $19.97 per hour (aligning with the Seattle minimum wage) and establish the mileage reimbursement rate at $.35 per mile.
The Governance Committee is anticipated to consider amendments to the legislation and advance it out of committee on May 9. The full Council may then consider the legislation as early as May 14.
