From today’s Publicola:
Gig delivery workers and their allies were bracing for legislation by City Council President Sara Nelson to repeal minimum wage legislation passed last year, known as the PayUp law. What they may not have expected was how far Nelson’s proposal would go to roll back reforms unrelated to wages, including protections against deactivation, transparency requirements, and legal rights for delivery workers to sue if their employer violates the law.
The new minimum wage, which works out to around $26 an hour, was intended to offset many of the employer-side costs drivers must bear because they’re classified as “independent contractors,” including workers’ comp insurance, employer payroll taxes, unemployment insurance, family and medical leave insurance, and gas, maintenance, and other costs associated with driving for a living.
The PayUp legislation also ensured that drivers would be paid for rest breaks and time spent doing work other than actively driving—costs that an employer would have to pay if the workers were traditional employees. And it made it harder for the companies to deactivate or otherwise penalize workers for doing things the companies don’t like, like going offline during periods of high demand.
Delivery companies, including Uber and Doordash, claimed that paying for these expenses would make it impossible for them to turn a profit, and imposed a $5 fee on every delivery order, instantly driving down demand for drivers’ services and leaving many in desperate straits. Nelson and other allies of the delivery companies now argue that rolling back the minimum wage is the only way to eliminate the fees and get Seattle residents ordering again—a claim workers dispute, noting that the apps haven’t provided financial data to back up their pleas of poverty.
But Nelson—whose company, Fremont Brewing, just sold a majority share to a firm that also owns dozens of restaurants that deliver through DoorDash—has proposed legislation that would far beyond repealing the new minimum wage. The bill Nelson introduced this week would put far more power in the hands of delivery companies, and strip authority from the city to enforce its own labor laws.
Read the complete story here.