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.
“You can discuss whether the adjustment rates are sufficient to assure people get the minimum wage, but overall it’s the right concept,” said Ken Jacobs, chair of Center for Labor Research and Education at the University of California, Berkeley.
The new law is the latest effort to rein in gig work and make it more like regular employment. A recent Gallup survey found that 36% of U.S. workers participate in the gig economy through primary or secondary jobs, and jurisdictions around the world have passed or are working on laws to give drivers and others more security and stability.
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