Seattle passes nation's second rideshare driver minimum wage law

One year after New York City did the same, Seattle enacted an ordinance in 2019 that guarantees a minimum wage for local rideshare drivers. Following an independent city-commissioned study that determined the exact amount drivers must earn to be guaranteed a minimum wage in Seattle, the new minimum wage for rideshare drivers has been approved by the Seattle City Council and will go into effect in 2021.

Seattle minimum compensation ordinance

The Seattle council approved a new minimum compensation standard in September 2020 that allows drivers contracted with rideshare companies to earn a minimum wage and charge the companies for business expenses such as rest breaks and car cleaning. The pay standard completes Seattle Mayor Jenny Durkan's Fare Share Plan, which passed the council in November 2019. The plan includes two ordinances.

Driver Deactivation Rights Ordinance No. 125976. The ordinance precludes unwarranted removal of rideshare drivers from apps and provides a right to challenge deactivations that may be unwarranted.

Minimum Compensation Ordinance No. 125977. The ordinance requires the rideshare companies to pay drivers a minimum compensation standard that comprises at least the equivalent of the Seattle hourly minimum wage plus reasonable expenses.