Uber will have to pay minimum wage to Seattle drivers
The Seattle City Council on Tuesday approved a minimum wage standard for drivers of transportation companies such as Uber and Lyft.
Under the ordinance, starting in January, drivers will now earn at least $ 16.39 per hour, the minimum wage in Seattle for businesses with more than 500 employees.
The Seattle law, inspired by a regulation similar to New York City, aims to reduce the amount of time drivers spend behind the wheel without a passenger by paying drivers more during those times.
City officials argue this should prevent Uber and Lyft from oversaturating the market at the expense of drivers, but the companies say it would effectively force them to block some drivers from accessing the app.
Both Uber and Lyft have blocked drivers in response to New York law.
“The City’s plan has many flaws and will in fact destroy jobs for thousands of people, up to 4,000 drivers on Lyft alone, and will drive our businesses out of Seattle,” Lyft said in a statement.
Uber did not immediately respond to a request for comment.
Researchers from the University of California, Berkeley and the New School of New York, who analyzed the transportation market in Seattle using city data and a survey of drivers, found that drivers charge about $ 9.70 per hour, with one third of all drivers working more than 32 hours per week.
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Uber will have to pay minimum wage to Seattle drivers
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