The Seattle City Council on Tuesday unanimously backed a new pay formula for Uber and Lyft drivers meant to ensure they make the same $16.39 per hour minimum wage as other workers in the city.
The new rules require ride-hailing companies to pay drivers rates high enough to account for a wide range of expenses and for the time drivers spend waiting for rides and heading on their way to pick up passengers, not just the time when a passenger is in the car.
As the gig economy surged in recent years, Seattle battled ride-hailing companies Uber and Lyft over pay and rights for their drivers, who are classified as independent contractors and work without basic guarantees like minimum wage. Drivers have split on City Hall proposals.
The new requirements, proposed by Mayor Jenny Durkan and approved by the City Council, met staunch opposition from Uber, Lyft and some drivers who worry the companies could respond as they have to similar rules in New York City. There, Uber and Lyft stopped hiring new drivers and restricted drivers’ access to the app. Uber allowed drivers to go online and drive anytime only if they had given a certain number of rides in the previous month.