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Mayor Durkan Transmits Her Fare Share Plan to Mandate A Minimum Wage and Provide Critical Worker Protections for Uber and Lyft Drivers, Establish First-in-the-Nation Driver Resolution Center

Proposal Will Also Generate $52 Million through Increased Charge on Companies Per Ride for More Than 500 New Affordable Homes Near Transit for Low- and Middle-Income Workers, Fully Fund Center City Connector Streetcar

SEATTLE (October 2) – Mayor Jenny A. Durkan transmitted five bills as part of her Fare Share plan to provide worker protections and a minimum wage for workers while also investing in key priorities for workers and transit through a modest new tax. Mayor Durkan’s plan will create an additional $0.51 per ride charge on Uber and Lyft for a total of $.75 per ride charge that would allow the City to invest more than $52 million for housing near transit, $56 million to fully fund the Center City Connector streetcar, and $17.75 million to create an independent Driver Resolution Center for Uber and Lyft drivers.

One of the bills will establish deactivation protections for transportation network company drivers as well as the first in the nation Driver Resolution Center. The Driver Resolution Center, which will be operated by a non-profit organization, will offer culturally responsive outreach and education services on driver rights since many drivers are immigrants and refugees.

The bill will allow drivers to challenge permanent deactivations and temporary deactivations, create notification standards for drivers who have been deactivated, and allow for representation through an appeals process with an advocate from the Driver Resolution Center. For drivers and companies who agree to proceed through the Deactivation Appeals Panel, this will allow for an impartial process for settling unwarranted deactivation by the companies as well as remedies.

“Seattle must be an inclusive and just city that is open to everyone, and where Uber and Lyft drivers can afford to live in the same city as the people they drive. These drivers are often on the road 10 to 12 hours a day, working full-time and then some and still barely able to make ends meet. They deserve at least a minimum wage and reasonable expenses. We’ve always been a city that puts our workers before any company’s bottom line, and our proposal continues that legacy,” said Mayor Durkan. “Being a city of the future isn’t just about the incredible gains of the new economy. It’s about being a city where all our workers are treated fairly, our communities can afford to live where they work, and everyone, regardless of income or ability level, has access to high-quality transit.” 

In addition to the budget transmitted last week, the legislation includes:

An ordinance creating deactivation protections and the Driver Resolution Center

An ordinance mandating that Uber and Lyft drivers be paid a minimum wage in addition to compensation for benefits and expenses, which will go into effect on July 1, 2020. Understanding the complexities of the current business model, the City will commission an independent study to evaluate average hourly work and expenses for drivers as well as costs to drivers not currently included such as paid sick and safe time, worker’s compensation, and unemployment.

  • A reduction of the current FAS regulatory fee of $.14 to $.08
  • An ordinance imposing a per ride tax on TNCs
  • A resolution detailing the spending plan for the proceeds of that tax, which includes investing millions of dollars in the Driver Resolution Center, housing near transit and in transportation projects, including the Center City Connector streetcar.