Tag: data centers

Despite Dire Warnings, Delivery Worker Wages Increased Under PayUp Law; Council Plans Data Center Moratorium

By Erica C. Barnett

1. Former city councilmember Sara Nelson’s effort to repeal a law that increased the way “gig” workers’ salaries are calculated, which would have reduced their pay substantially and increased profits for companies like Uber and Doordash, died that September after six months of heated debate. (The proposal would have effectively overturned the PayUp law, just adopted the previous year, whicih required companies to pay some of the expenses drivers previously had to absorb—expenses that pushed drivers’ pre-tip pay below the legal minimum wage). Although four council members voted for the bill in committee, it died quietly in late 2024.

A recent study by the city’s Office of Labor Standards now confirms what many drivers themselves said when testifying against the Nelson bill: Between January 2024 and July 2025, the average pay for drivers working for the five largest delivery companies average pay increased despite a reduction in tips, indicating that the legislation raising worker pay succeeded at its goal. The study looked at the approximately 92,000 workers who drive for companies like Doordash, most of whom work part-time and use multiple apps.

What’s more, predictions that drivers would get fewer orders did not come true—instead, the number of orders grew by 3.2 percent. The number of drivers increased by a similar amount in the same period—2.8 percent.

Pre-tip pay for “engaged time”—time spent actively completing orders—rose to an average of $30.12 during the study period, after subtracting mileage expenses (the report does not include an average prior to 2024). Pay for “online time,” which includes time drivers spent waiting for orders to come in, rose to an average of $15.98 an hour. This was despite an increase in fees by delivery companies, which add to the cost of orders.

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The PayUp law required delivery companies to report detailed information about drivers and their earnings, which is how OLS had access to such an expansive dataset.

The report did confirm that tips declined a bit (by an average of $2.37 a week) after worker wages went up, increasing the cost of deliveries, but noted that the percentage of workers’ income made up by tips was much lower, since drivers’ new base pay is now more consistent and predictable. Most drivers work part-time, with average weekly wages rising from $314.40 to $341.62, including tips.

2. Three city councilmembers—Council President Joy Hollingsworth, Debora Juarez, and Eddie Lin—will propose legislation next week that would ban data centers inside city limits, they announced yesterday. The legislation comes in response to reports that unnamed companies were planning five data centers on land owned by Seattle City Light; according to the Seattle Times, which reported the initial news, two of the companies withdrew their proposals this week.

The legislation would not directly impact City Light-owned properties outside Seattle; councilmembers are reportedly discussing a potential bill that would address data centers on these properties, such as a moratorium that specifically targets City Light. Leases of City Light-owned land still have to be approved by the City Council, so the council could choose to reject a lease for a data center even in the absence of a moratorium, although they would face financial pressure for rejecting revenue-generating opportunities.