Seattle Office of Labor Standards’ First Report on App-Based Worker Minimum Payment Ordinance Data Shows Significant Benefits for Delivery Workers

Data Provided by Five Largest Worker Platforms from January 2024 - June 2025

The Office of Labor Standards (OLS) announces the analysis of comprehensive data reported by the five largest network companies. Seattle’s App-Based Worker Minimum Payment Ordinance (SMC 8.37), the First Report: An Analysis of the First Eighteen Months for App-Based Delivery Workers identifies market trends and impacts for workers during the first 18 months after the  App-Based Worker Minimum Payment Ordinance (ABWMP) went into effect January 13, 2024.

During the first 18 months of implementation, the ordinance covered 92,801 workers working for the five largest network companies. These companies facilitate the vast majority of covered delivery offers in Seattle and include the largest app-based restaurant, grocery/retail, and package delivery network companies operating in the city.

The data points to the growth of the industry and the number of workers. Over the course of the study, on average:

• The number of offers completed by the largest network companies grew by 3.2% from the first half of 2024 to first half of 2025.

• Post-implementation, base payment was most of the worker’s pay, which increases the transparency and predictability of workers’ earnings.
•  Tips and bonuses made up a much smaller share of earnings.

• Average worker pay increased significantly compared to pre-ordinance reports and continued increasing from 2024 to 2025.

"I've led campaigns to raise workers' pay because I know that higher wages make life more affordable for working people and drive economic growth too," said Mayor Katie B. Wilson. "This new report shows that Seattle's gig worker minimum pay law is delivering results for workers and the economy as a whole: pay is up, orders are up, and workers are enjoying more flexibility and transparency than ever before."

“Our report explains that, over the 18-month time frame, workers earned better, more predictable wages under this ordinance. The report underscores the need to hold gig companies accountable through effective enforcement and ensure ongoing compliance. Due to the data produced by these five companies, OLS has an unprecedented opportunity to bring transparency by documenting the factual impacts of Seattle’s law. This is the first of several reports to analyze this information. Worker advocates pushed for the ABWMP law for better pay, transparency, and for app-based workers to have the ability to choose when and how they want to work,” said OLS Director Steven Marchese. “OLS has been gathering network company data since 2024, and we’ve developed a comprehensive and reliable dataset. Throughout this process, we also reviewed other scholarly publications to ensure the validity of our research questions and methodology.“

“The Seattle Office of Labor Standards report clearly shows the positive effect that Seattle’s app worker pay standard is having for thousands of the city’s delivery workers. Using the most comprehensive measure of worker pay—one that encompasses all working time on the app, and that adjusts for traditional employer payroll costs and vehicle expenses—the report documents that driver hourly take-home pay was $16.29 for the first half of 2025, considerably higher than before the pay standard took effect,” said Senior Fellow and Senior Advisor, Center for New York City Affairs at The New School James A. Parrott, PhD. “Contrary to some press reports, based on the OLS analysis of data for all workers on the major delivery platforms for a sustained period following initial implementation, the total number of delivery orders rose by 3.2 percent and average hourly pay increased by 6.5 percent between the first half of 2024 and the first half of 2025. The report affirms that thoughtful public policy can rise to the challenge of ensuring fair compensation for platform workers while maintaining consumer access.”

“As a dedicated independent contractor Seattle’s App-Based Worker Minimum Payment Ordinance has provided great benefits to me. My income is now better and more stable knowing that every order I take has fair pay for the time and distance it will take. I can manage my time on these apps and be able to handle personal responsibilities and work time better than before,” said Alberto who’s worked as an app-based worker for seven years. “The “race to the bottom” of gig work in other areas is no longer hurting workers here in Seattle. I am thankful for the legislation that helps to protect us.”

OLS will continue to analyze the quarterly records reported by covered network companies including a broader analysis that incorporates smaller network companies. Additionally, OLS will conduct qualitative research designed to understand workers’ experience post-ordinance. 

Please visit https://www.seattle.gov/laborstandards/ordinances/app-based-worker-ordinances/app-based-worker-research for detailed information on the ABWMP data report. For information on the App-Based Worker Minimum Payment Ordinance and resources visit the webpage at https://www.seattle.gov/laborstandards/ordinances/app-based-worker-ordinances/app-based-worker-minimum-payment-ordinance

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