Transportation Network Company Minimum Compensation Ordinance

Minimum Compensation Ordinance

The Minimum Compensation Ordinance went into effect on December 26, 2019.

Transportation Network Company Minimum Compensation Ordinance

The Transportation Network Company (TNC) Minimum Compensation Ordinance establishes as City policy that TNC drivers providing services in Seattle should be compensated at least the equivalent of Seattle's large employer minimum wage ($16.39 in 2020) plus reasonable expenses. Further, it requires the City to conduct an evaluation to determine the exact rate. This process will entail both an academic study based on survey and other data, as well as community input. 

The academic study is led by the Department of Finance and Administrative services in coordination with the Office of Labor Standards.  The City has retained economists James Parrott of The New School and Michael Reich of University of California Berkeley to conduct the study.  Professors Parrott and Reich will conduct an analysis to determine a minimum compensation standard for TNC drivers that accounts for earnings, work time, and expenses. In a joint effort, the Department of Neighborhoods and the Mayor's Office of Innovation and Performance will engage community members and drivers to gain insights into driver working conditions, values and challenges in order to better inform the minimum compensation policy.