App-Based Worker Minimum Payment Ordinance

Ordinance: SMC 8.37

Rules: SHRR Chapter 240 (Administrative Rules)

Rules: SHRR Chapter 140 (Complaint Procedure)

On May 31, 2022, City Council passed the App-Based Worker Minimum Payment Ordinance, SMC 8.37.

This law is effective on January 13, 2024.

The ordinance applies to certain app-based workers (sometimes referred to as gig workers) and provides for several rights and protections for covered workers. Key rights include:

• Minimum Payment: Right to minimum pay based on the time worked and miles travelled for each offer.
• Transparency: Right to upfront disclosures of offer-information and right to receipt and payment records.
• Flexibility: Right to access the network platform without limitations (except for health and safety limitations), right to not be penalized for limiting availability or refusing offers, and the right to cancel an offer with cause.

Minimum compensation: Network companies must pay the greater of

•  Minimum per-minute amount of $0.44 and a per-mile amount*

OR

• Minimum per-offer amount of $5

*Office of Labor Standards will determine and publish the per-mile amount after the Internal Revenue Service (IRS) releases the 2024 standard mileage rate.

Rate Updates: Updated rates for the per-mile, per-minute, and per-offer amounts are effective on January 13, 2024, and January 1 of each year thereafter. These rates will increase based on annual inflation and standard mileage rate adjustments. The first adjustment of per-offer amount will be on January 1, 2025.