PayUp Legislation – Consulting | seattle.gov

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Background

“Gig work,” or work performed by independent contractors, such as on-demand food delivery, pet sitting, or grocery shopping, is one of the fastest growing job sectors. fast in our economy. This work has proven invaluable to many and it is important to protect the flexibility that on-demand work offers. However, we must ensure that their workers are paid properly.

Many construction workers are underpaid and sometimes, after factoring in expenses such as mileage, vehicle maintenance, and other business expenses, workers can even lose money at a gig. . It is high time these workers received Seattle minimum wage plus compensation for business expenses, including work-related miles.

Gig businesses see unprecedented growth and billions in revenue:

Payment Policy Package

The PayUp Policy Package is a group of bills being drafted and introduced by Council members Lisa Herbold and Andrew Lewis that aim to address the many issues faced by gig workers. The content below will show you the details of each proposal as the bills are introduced. More information will be added to this section as the bills progress.

Invoice #1

Minimum payment / Transparency / Flexibility

minimum payment

Minimum payment

Provide or ensure payment of minimum wage plus expenses with a floor per minute and per mile for committed time required to perform each offer. minimum payment calculation

transparency

Transparency

Provide workers with the information needed to make informed choices about which offers to accept and to verify compliance with minimum wage requirements.

Provide clients with information on the nature of charges, including amounts paid to workers and withheld by the company.

Provide OLS with regular and routine access to aggregated and disaggregated company records.

flexibility

Flexibility

Protect worker flexibility, including the right to freely choose jobs and schedules, while maintaining companies’ service delivery to customers and third-party companies.

Invoice #2

Access to toilets

access to toilets

Invoice #3

Anti discrimination

anti discrimination

Invoice #4

Background check

background check

Invoice #5

Deactivation

deactivation

Invoice #6

Advisory Board

Advisory Board

Chronology

The Council has been meeting with a large group of stakeholders for almost a year, starting in June 2021. By April 2022, there had been 12 such large stakeholder meetings. Stakeholders have included a wide range of companies that may be affected, such as DoorDash, Uber Eats, Rover Instacart and others; independent contractors who work for these companies; Board members and others.

Large stakeholder meetings

  • June 9, 2021 – Introduction and general overview of the policy proposal
  • June 15, 2021 – Discussion on the coverage of the policy proposal
  • June 22, 2021 – Discussion on salary structure
  • June 29, 2021 – Discussion on transparency and flexibility
  • July 6, 2021 – Disabling Discussion
  • July 13, 2021 – Discussion of background checks
  • July 20, 2021 – Discussion on access to the toilets
  • July 27, 2021 – Discussion on anti-discrimination and reasonable accommodation
  • August 3, 2021 – Application discussion
  • August 10, 2021 – Advisory Board Discussion

The Board suspended stakeholder meetings during the Board’s budget process. The Office of Labor Standards conducted a review and proposed changes to the first bill, which include minimum payment, transparency, and flexibility. In addition, the stakeholders continued to meet with each other.

  • January 25, 2022 – New Shared Bill
  • February 1, 2022 – Discussed changes included in shared drafts at 01/25/22 meeting

Additional stakeholder meetings continue to take place separately with subgroups, including market-based companies and on-demand delivery companies, to address their unique concerns.

Committee meetings

  1. July 13, 2021
  2. September 14, 2021
  3. February 8, 2022

FAQs

Uber Eats, DoorDash, GrubHub, Caviar, Task Rabbit, Rover, Instacart, GoPuff and Shipt are all examples of businesses that would likely be covered by this legislation.

In 2022, the Washington State Legislature passed HB 2076 which applies specifically to Transmission Network Companies (TNCs). TNCs are companies like Uber and Lyft. While a company like Uber also does on-demand food delivery, HB 2076 applies strictly to the passenger transportation side of its business. HB 2076 does not provide on-demand delivery protections like the PayUp policy package protections.

Some workers, after factoring in business expenses and miles traveled, earn below Seattle minimum wage. This is why the passage of these protections is so important. Since these workers are not hired as W2 employees, they are not subject to the city’s minimum wage law.

Living and working in the city is expensive and all workers should have the opportunity to earn minimum wage. Gig businesses bring in billions in revenue, their workers make that profit possible, and they should be able to earn at least minimum wage when their businesses generate so much wealth.

As noted above, the Council began conversations with stakeholders in June 2021 and has met more than a dozen times while holding multiple committee meetings on each proposed bill in the pipeline.

This legislation is supported by a broad coalition of workers, labor rights advocates such as Working Washington and other organizations such as Seattle Restaurants United.

Other jurisdictions are considering similar laws. NYC, for example, recently passed a series of laws establishing multiple workplace protections for third-party food deliverers, including but not limited to minimum payment requirements per trip (the Department of consumer and worker protection issue rules establishing minimum travel payment standards by January 1, 2023); disclosure of gratuity policies; and agreements between online third-party food delivery services and catering establishments to provide restroom access to food deliverers

No, the proposal recognizes that there is a difference between on-demand delivery companies and marketplace network companies with different approaches to each.

It is well known that these workers often earn below the Seattle minimum wage. When the city considered and passed similar legislation to protect Transporation Network Company (TNC) drivers, we commissioned a study at UC Berkeley’s Institute for Labor and Employment Research. They found that after expenses, workers only earned $9.73 per hour.

Moreover, these workers – considered frontline workers – need protections now, they have worked for years below minimum wage. They cannot keep waiting for these protections.

Media coverage

PayUp supporters protest outside City Hall

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