Seattle City Council Passes US's First Minimum Wage Guarantee for Gig Workers

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Seattle City Council Passes US's First Minimum Wage Guarantee for Gig Workers
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Seattle City Council approved new rules to ensure that companies such as DoorDash, UberEats, Grubhub, Instacart and Amazon Flex are paying gig workers the city’s minimum wage, which is set at $17.27.

, a spokesman for DoorDash called PayUp “untested and hasty,” and said the standards would lead to higher costs for customers, fewer orders from businesses and reduced earnings for gig workers. Delivery “dashers” in Seattle make an average of $28 per hour when on delivery, the company boasted.displayed to app users, DoorDash also claimed the “Seattle City Council’s proposal” may cause “fee increases” of up to $5.

App companies dodge minimum-wage requirements by hiring workers as independent contractors rather than employees, a model theyinto a campaign to pass a statewide referendum in 2020. The companies claim their model provides workers with flexibility, but critics say it allows apps to pay as little as $2 per hour after expenses. In an email, Instacart said the “disastrous” policy would raise prices for consumers.

“It’s an absurd loophole that gig companies have built a business model to exploit, and we shouldn’t be incentivizing business models that rely on that kind loophole,” Wilson said in an interview.

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