Transportation Network Company Minimum Compensation Ordinance

Minimum Compensation Ordinance

TNC Minimum Compensation Standard Study 

On October 8, 2021, the Mayor signed the Transportation Network Company (TNC) Minimum Compensation Ordinance. The ordinance requires that TNCs like Uber and Lyft provide a minimum guaranteed per-trip payment that is at least the equivalent of Seattle's large employer minimum wage plus compensation for reasonable expenses.

Key provisions of the ordinance are below: 

Effective date: The ordinance will be effective on January 1, 2021. 

Minimum compensation: TNCs must pay the greater of

  •   Minimum per mile amount of $1.33 and per minute amount of $0.56* 

                   OR 

  • Minimum trip payment of $5

Tip Protection: TNCs must pay all tips to drivers and cannot use tips to satisfy the minimum compensation requirements. 

Deductions: Deductions from pay are permitted only if they are in writing and for the benefit of the TNC driver. A TNC cannot earn a financial benefit from any deduction.

Personal Protective Equipment and Disinfecting Supplies: During the COVID-19 civil emergency, TNCs must  supply drivers with, or reimburse drivers for, a reasonable amount of personal protective equipment and disinfecting supplies.

Transparency: TNCs must provide drivers with notice of rights, receipts for every trip, and weekly pay statements. TNCs also must provide passengers with receipts for every trip.

*During the first three months of 2021, the per minute amount will be phased in according the below rate schedule:

MonthPer minute amount
January 2021 $0.32
February 2021 $0.41
March 2021 $0.49
April - Dec. 2021 $0.57

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