Leroy N. Soetoro
2024-04-27 23:38:44 UTC
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Alaw calling for a $20 minimum wage has led to brutal backlash as
customers opt out of ordering delivery in Seattle, Washington.
The Seattle City Council is in the middle of deciding whether to pass a
new law that would adjust its prior PayUp bill that went into effect in
2022.
The PayUp law enforced a minimum wage for gig workers, which includes
delivery drivers for local restaurants and platforms like Uber Eats and
DoorDash. Under PayUp, delivery drivers made $26 per hour before
accounting for mileage and tips.
Under the new proposal, gig workers were provided a minimum wage of
$19.97, which is Seattle's minimum wage, plus a per-mile minimum payment
of $0.35. However, this rule has many worried gig workers would go without
a living wage.
"At the end of the day, this proposal is to return this industry to sub-
minimum wages, which is why we oppose it," Danielle Alvarado, the
executive director of Working Washington, told local station Fox 13.
00:57
Minimum Wage Could Double In One State Under New Proposal
By Suzanne Blake
Reporter, Consumer & Social Trends
FOLLOW
59
Alaw calling for a $20 minimum wage has led to brutal backlash as
customers opt out of ordering delivery in Seattle, Washington.
The Seattle City Council is in the middle of deciding whether to pass a
new law that would adjust its prior PayUp bill that went into effect in
2022.
The PayUp law enforced a minimum wage for gig workers, which includes
delivery drivers for local restaurants and platforms like Uber Eats and
DoorDash. Under PayUp, delivery drivers made $26 per hour before
accounting for mileage and tips.
Under the new proposal, gig workers were provided a minimum wage of
$19.97, which is Seattle's minimum wage, plus a per-mile minimum payment
of $0.35. However, this rule has many worried gig workers would go without
a living wage.
Delivery drivers
Group of delivery people waiting on e-bikes outside McDonalds fast food
restaurant, Queens, New York. Seattle is considering a new bill that would
bring down the minimum wage for delivery drivers after reduced consumer
demand. LINDSEY NICHOLSON/UCG/UNIVERSAL IMAGES GROUP VIA GETTY IMAGES
"At the end of the day, this proposal is to return this industry to sub-
minimum wages, which is why we oppose it," Danielle Alvarado, the
executive director of Working Washington, told local station Fox 13.
The PayUp bill led to extra customer fees on app deliveries, which
fostered a significant reduction in customer demand. But it was also said
to protect delivery drivers, who are forced to spend their own money on
extra costs like gas and vehicle maintenance.
"Under these revisions, drivers would still be paid at a guaranteed hourly
rate, although some advocates say when you factor any other expenses these
gig workers face, it would ultimately present a negative effect to their
overall pay," Alex Beene, a financial literacy instructor at the
University of Tennessee at Martin, told Newsweek.
DoorDash said the company experienced 300,000 fewer orders within Seattle
in the past three months, likely related to the city's minimum wage
guidelines and how they impacted consumer prices.
"It's painfully clear from listening to Dashers, merchants and consumers
that this new law simply isn't working," DoorDash said in a statement, as
reported by Fox 13. "The latest numbers show that the longer this law
remains in place, the more harm it causes. The compromise proposal
presented by Drive Forward that the City Council is considering is a
promising step toward increasing affordability for consumers and restoring
millions in lost revenue for merchants and Dashers in Seattle."
Uber also said delivery orders had shifted down by 30 percent in the weeks
following the law's passage.
"Protecting gig workers is important," finance expert Michael Ryan, the
founder of michaelryanmoney.com, told Newsweek. "But the real-world
impacts have been pretty brutal for all sides so far. That's why the city
council is now considering scaling back some of the wage requirements."
The new law could be voted on by May 21, and restaurants, employees and
customers alike are waiting to see how it will impact them financially.
The law could also face amendments before being passed.
Newsweek reached out to the Seattle City Council for comment via email.
Beene said Seattle and other major cities are struggling to figure out how
to pass minimum wages that fit the financial needs of employees while not
harming the local economy.
"There seems to be a universal agreement that these workers deserve better
wages than what they were receiving, but it's difficult to know exactly
how much employers can give while also turning a profit," Beene said. "The
advocates calling for more transparency from employers in this space are
spot-on. We need a breakdown of where all these charges to the customer
are going in order to know how much truth there is to the claim they can't
pay over a certain amount."
--
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