
By Erica C. Barnett
The Seattle City Council’s governance and economic development committee approved a bill sponsored by Council President Sara Nelson that will lower the minimum wage for so-called “gig” delivery workers on Thursday, with Joy Hollingsworth abstaining because, as she put it, “I still want this bill to be baked more.”
The 4-1 vote came after hours of testimony from delivery drivers who were overwhelmingly opposed to the legislation and have shown up at public comment periods for weeks on end to ask the council not to cut their wages. After last year’s city council, including Nelson, voted for the “PayUp” bill that required gig companies to cover more of workers’ costs, wages went up to an average of around $26 an hour. In response, the gig companies—Uber, Doordash, Instacart, and others— imposed a flat $5 fee on every order, causing demand for delivery service to plummet.
A handful of drivers, mostly representing the Uber-funded lobbying group Drive Forward, said the changes would enable the companies to drop the fees.
Several council members patted themselves on the back for listening to “all sides” of the issue before voting to approve a bill that satisfied almost all of the delivery companies’ demands.
Nelson, for example, spent several minutes reading the February testimony of bike delivery worker Heather Nielson, who said the fees had caused customers to “boycott the apps” and stop providing tips, into the record. Nielson, later featured on the conservative website The Center Square, said tips make up 90 percent or more of drivers’ wages—a claim that many other drivers contradicted in their testimony.
Nelson seemed eager to ignore those workers’ comments, referring to them dismissively as “all this noise we’ve been hearing.”
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Her legislation, she said, “is an effort to reverse the bad outcomes caused by a flawed law” that resulted in a “drastic reduction in worker wages and lost revenues for restaurants and other retail establishments. That’s what happened. That was the chain of events. And all of this was anticipated but the last council did it anyway. And now we’re faced with the fallout.”
Councilmember Maritza Rivera recalled a time when, “as a young woman, I worked as a server in a fast food restaurant where I made the legal minimum wage and relied on tips to pay rent, utilities and groceries.” In most states, restaurants can pay sub-minimum wages for tipped workers on the justification that workers make plenty of money from customers’ tips, and companies like Doordash and Instacart adopted the practice in states where it’s still legal until a series of lawsuits forced them to alter their policies. Washington state does not allow a “tip credit.”
The legislation notably,, does not require companies to stop paying the $5 fee; nor does it impose any new restrictions on the companies’ power over their workers, such as their ability to “deactivate” (fire) workers for any reason, including wanting to set their own work hours.
Instead, the bill reduces workers’ pay and takes away some of the rights they currently have. First, the bill lowers the amount companies must pay their drivers for expenses, such as self-employment (employer) taxes and workers’ compensation, that the drivers wouldn’t have to pay if they were classified as employees. Continue reading “City Council Bill Cutting “Gig” Delivery Workers’ Pay Moves Forward”



“Councilmembers have reported to me that they are most productive when the staff who support them are available for in-person meetings and impromptu consultations,” Nelson wrote in a
By Erica C. Barnett
By Erica C. Barnett