Seattle Delivery Pay Law Raised Rates But Not Drivers' Pay

Study finds higher per-task minimums led to fewer tips and fewer completed deliveries, wiping out monthly gains for gig workers.

Apr. 5, 2026 at 5:20pm

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A new study from the National Bureau of Economic Research (NBER) found that Seattle's 2024 law raising the minimum per-delivery pay for app-based drivers did not result in higher monthly earnings for workers. While the base pay per delivery roughly doubled, drivers saw a drop in tips and completed fewer deliveries each month, ultimately leaving their overall pay unchanged.

Why it matters

The Seattle law was intended to boost incomes for gig delivery workers, but this research suggests that in a market where anyone can easily become a driver, simply raising the minimum per-task rate can backfire by attracting more workers and reducing utilization. The findings highlight the challenges of crafting effective pay policies for the gig economy.

The details

The NBER study analyzed 2.8 million individual delivery tasks by nearly 6,000 drivers in Seattle. It found that while the city's App-Based Worker Minimum Payment Ordinance doubled the average base pay per delivery from $5 to over $12, this was offset by a drop in tips and a 20-30% reduction in the number of monthly deliveries completed by the most active drivers. Researchers say the platforms adjusted their interfaces to sometimes hide the tipping option, and the influx of new drivers made it harder for incumbents to find available work.

  • The Seattle delivery pay law took effect on January 13, 2024.
  • The NBER study analyzed data from before and after the law went into effect.

The players

Seattle's App-Based Worker Minimum Payment Ordinance

A 2024 law that set a minimum per-delivery pay rate for app-based drivers in Seattle.

NBER

The National Bureau of Economic Research, which conducted the study on the impact of Seattle's delivery pay law.

Carnegie Mellon researchers

The team of researchers from Carnegie Mellon University who authored the NBER study.

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What’s next

City leaders, driver advocates and researchers are now arguing over what a fix should look like, including tweaking the pay formula, improving how tips are displayed to customers, and rethinking pass-through fees.

The takeaway

This case study in Seattle highlights the challenges of regulating gig economy pay, as simply raising the minimum per-task rate can backfire by attracting more drivers and reducing overall utilization, ultimately leaving worker incomes unchanged. Policymakers will need to consider more targeted approaches if they want to reliably boost gig worker earnings.