Seattle's $20 Minimum Wage Backfires
Seattle's $20 minimum wage law for gig workers has led to a decline in delivery orders.
The original PayUp law set a minimum wage of $26 per hour for delivery drivers, including mileage and tips. However, under a new proposal, gig workers would receive a minimum wage of $19.97 plus $0.35 per mile. This change has raised concerns among drivers that they would not earn a living wage.
DoorDash reported a 300,000 decrease in orders within Seattle in the past three months, while Uber experienced a 30 percent decline in delivery orders.
The Seattle City Council is considering amendments to the law, which could be voted on by May 21. The council faces the challenge of balancing the need for fair wages for employees with the potential negative impact on the local economy.