New Benefits for Gig Workers in Seattle

Over the past few years, the gig economy has grown tremendously.  Gig workers are independent contractors or freelancers who typically perform short-term work.  Gig workers can work hourly, part-time, project-based and can either work on an ongoing contract or temporary position.  Gig workers receive 1099 tax forms while employees receive W-2 tax forms.  Although there are multiple benefits to gig work, such as being your own boss, having a flexible schedule, and deciding what jobs to accept, there are also downsides.  One downside is that gig workers do not benefit from the same job protections as employees.  As the gig economy grows, cities and states are proposing and passing protections to safeguard gig workers’ rights. 

Seattle City Council passed the ‘Pay Up’ bill (the “Bill”) which covers gig workers for app-based companies with 250 or more contracted workers.  This includes, delivery drivers, or workers affiliated with staffing apps such as Instawork.  Despite Seattle’s $17.27 per hour minimum wage, recent reports found gig workers earned an average of under $10 per hour.  The Bill ensures that gig workers are paid at least minimum wage, after expenses, and not including tip.  The Bill requires companies to pay per-minute and per-mile rates.  Further, the Bill prevents employers from disciplining gig workers for rejecting work.  The new Bill does not cover Uber and Lyft since those companies are covered by existing city and state policy.  The new Bill also does not cover “marketplace” apps such as TaskRabbit and Rover.

Individuals who believe they have not been paid properly should seek legal counsel to analyze their potential claims.  Contact our offices to learn more about your rights.