The Seattle City Council will delay a planned vote on a new minimum wage law for food delivery drivers.
Council President Sara Nelson, who introduced the proposed legislation, issued a press release about an hour before Tuesday’s council meeting where councilmembers were expected to vote on the law.
“Amendments to the legislation have been proposed and councilmembers have requested a postponement to ensure the Council has time to fully consider those changes,” the release stated.
It’s the latest chapter in a heated battle over minimum pay standards designed for independent contractors delivering food for tech platforms such as Uber Eats and DoorDash.
Seattle implemented its original minimum pay law in January, nearly two years after it was approved by lawmakers.
Soon after, Uber and DoorDash added a $5 fee to every consumer order, in what was described by the companies as a way to offset the new regulation. Demand fell as a result.
They also increased lobbying efforts at City Hall, and their chief executive officers spoke against the law in response to questions from analysts on earnings calls.
Last month, Nelson introduced new legislation that lowers the minimum wage standard for drivers from $26.40 to $19.97, in addition to other changes from the existing law.
The Seattle City Council’s governance, accountability, and economic development committee approved the new ordinance earlier this month.
The response from drivers who spoke at previous council meetings over the past several months is mixed. Some want the city to keep the existing pay standard because they are now making enough money to cover their rent. But several others are making substantially less income because of reduced demand.
Restaurants owners also offer conflicting opinions — some support the current law, while others say the lack of demand is hurting their business.
Seattle and New York City, which also recently implemented a minimum wage for delivery drivers, have become testing grounds for the impact of labor standards in a growing food delivery market facilitated by tech companies that tout the flexibility and independence offered by their platforms, but have come under scrutiny for their impact on workers and restaurants.
Seattle’s minimum wage legislation is part of several unique “PayUp” laws approved recently. Other “PayUp” policies include an ordinance related to the worker deactivation process and a 10-cent per-order fee approved in November that will help fund the implementation and enforcement of the “PayUp” laws. Seattle also passed a sick leave law for delivery workers last year.
