Seattle’s “PayUp” law, effective January 13, 2024, mandates minimum wage standards for gig workers, including those at DoorDash and similar platforms. This legislation aims to ensure fair compensation for app-based workers in the city.

Key Takeaways:

  • Minimum Wage Enforcement: Gig workers must receive at least Seattle’s minimum hourly wage.
  • Per-Mile Compensation: Additional pay per mile is required.
  • Operational Challenges: Businesses face increased costs due to the law.

Understanding Seattle’s Gig Worker Minimum Wage Law

Seattle’s “PayUp” law ensures gig workers, like delivery drivers for DoorDash, Uber Eats, and Instacart, earn at least $20.76 per hour, the city’s minimum wage in 2025. Here’s how it works:

  1. Hourly Minimum Pay:
    Workers are paid for the time they are actively working on a job. This includes time spent traveling to pick up an order, waiting at a restaurant, and delivering the order.
  2. Per-Mile Payment:
    On top of the hourly rate, workers get $0.77 for every mile driven during a delivery. This is meant to cover vehicle expenses like gas and maintenance.
  3. Guaranteed Minimum Per Delivery:
    Even if a job is short and doesn’t take much time or distance, workers are guaranteed a minimum of $5.20 for each completed delivery.

Examples of How the Law Works

Example 1: Short Job
A driver spends 10 minutes picking up and delivering an order that’s 1 mile away.

  • Time: 10 minutes = $3.46 (calculated from $20.76/hour).
  • Distance: 1 mile = $0.77.
  • Total: $4.23.
    Since the total is less than the guaranteed $5.20, the driver gets $5.20 for this job.

Example 2: Longer Job
A driver spends 30 minutes on a delivery that’s 5 miles away.

  • Time: 30 minutes = $10.38.
  • Distance: 5 miles = $3.85.
  • Total: $14.23.
    Since the total is more than $5.20, the driver gets the full $14.23 for this job.

Frequently Asked Questions:

You receive compensation after completing each delivery or ride. The payment is processed per offer and includes the time you actively worked and the distance you traveled during that task. Compensation is usually reflected in your app’s payment summary, which you receive via email from the app.

No, tips are additional and cannot be used to meet the minimum payment. Workers must receive the base minimum payment regardless of tips.

Minimum payment is based on Seattle’s hourly minimum wage ($20.76 for 2025) plus compensation for miles driven and time spent on the job.

Workers receive $0.77 per mile to cover expenses like fuel and vehicle wear-and-tear.

No, compensation only applies to completed offers. Rejected or canceled orders are not eligible for payment.

Yes, workers have the right to upfront disclosures about each job, including distance, expected time, and guaranteed pay before accepting.

It applies to workers who perform tasks in Seattle, even if the app is based elsewhere.

The law covers work that starts or ends in Seattle, ensuring compensation for the portion of work performed within city limits.

Yes, time spent waiting during engaged tasks is factored into the hourly minimum wage requirement.

Workers can file complaints with the Seattle Office of Labor Standards to address wage violations or non-compliance.

Yes, workers are guaranteed at least $5.20 per delivery, regardless of the order size or total payment.

Employers are required to provide detailed payment records regularly to ensure transparency.

No, retaliation against workers for asserting their rights under the law is strictly prohibited.

Implications of The Law in Real Life

While the law intends to provide fair compensation, the reality is more complex. Some workers report that increased base pay is offset by reduced bonuses and incentives, leaving their overall earnings unchanged or even diminished. Moreover, the per-mile compensation often fails to cover actual expenses, especially with rising fuel costs.

Impact on Businesses and Consumers

Businesses are feeling the pinch. The mandated wage increase has led to higher operational costs, prompting some restaurants to shut down. For instance, Bebop Waffle Shop in West Seattle closed its doors, citing the new wage law as a significant factor.

Consumers aren’t spared either. To offset increased expenses, delivery platforms have hiked service fees, making food delivery less affordable. This has led to a decline in order volumes, further straining local businesses that rely on delivery services.

Critiques and Controversies

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Critics argue that the law, though well-intentioned, overlooks the complexities of the gig economy. By imposing traditional employment standards on flexible gig work, it disrupts the balance that attracted both workers and consumers to these services in the first place. The result? A lose-lose situation where workers face reduced opportunities, businesses grapple with unsustainable costs, and consumers encounter higher prices.

What do you think about the law? Share your thoughts in the comments!