New BC minimum wage laws for app-based ridehailing and delivery workers start in September

The Government of British Columbia has announced that finalized regulations to improve the wage and labour conditions of app-based ridehailing and delivery workers are now imminent.

The new regulations will come into effect on September 3, 2024, applying to those who work on apps such as Uber, Lyft, Uber Eats, SkiptheDishes, DoorDash, and others.

The specifics of the regulations will be publicly posted in a few days, but the policy changes focus on five core areas.

You might also like:
• BC gig workers will finally benefit from basic employment standards
• Hundreds of thousands of Canadians are resorting to gig work as their main job: report
• Opinion: BC government is protecting the flexibility that ride-hailing drivers value most
• Side hustle success: How to make more money in the gig economy
• Uber Canada drivers will soon know fare and destination before accepting ride

The new regulations will set a minimum wage for engaged time and a minimum per-km vehicle allowance to compensate workers for their vehicle operating costs.

As of June 1, 2024, the general minimum wage in BC is $17.40 per hour. However, according to the provincial government, workers on these apps frequently get paid less than the minimum wage after working long hours.

The new separate minimum wage for app-based gig workers will be $20.88, which is 120% of BC’s general minimum wage and will rise annually by the rate of inflation. It will be applied to engaged time, which begins when a worker accepts an assignment through its completion, and does not include the time spent waiting between assignments. If the earnings paid in a pay period do not meet the minimum earnings standard for the engaged time worked, the companies will be required to top up the difference.

Moving forward, all ridehailing and delivery workers will be covered through WorkSafeBC’s workers’ compensation program, and companies must inform workers why they are being suspended or terminated.

As well, companies must allow workers to see the ridehailing/delivery destination and the estimated pay for the job before workers accept it. Lyft already provides this information to their workers, while Uber has plans to roll this feature out later in 2024 in anticipation of the regulation changes in some Canadian jurisdictions like BC.

Additionally, companies must pay 100% of the tips provided by the customer to the worker. Tips must be separate from the new separate minimum wage for app-based gig workers.

According to the provincial government, their consultation work over the years to develop the new policies has led to the creation of a “balance” between the unique challenges of gig work and the issues raised by workers and affordability for BC customers.

The provincial government states the full suite of new measures are a first in Canada.

It is estimated that there are currently about 11,000 ridehailing drivers and 35,000 delivery workers in the province.

Daily Hive Urbanized has reached out to Uber Canada, the largest app-based gig labour company, for comment.

“All companies should be providing basic fairness like minimum wage for their workers. Everyone working hard to support their families should have basic protections so if they’re injured on the job, they won’t lose their homes. That is what we are doing with these regulations — providing fair pay and basic protections for these workers,” said Harry Bains,  BC Minister of Labour, in a statement today.

Janet Routledge, BC Parliamentary Secretary for Labour, added, “At the end of a shift, after paying their vehicle expenses, these workers are barely ahead of where they started. The new protections are going to change that.”

The provincial government states the top concerns raised by the workers include low and unpredictable pay, lack of workers’ compensation, lack of transparency, unfair deactivations and suspension, and tip protection.

With deteriorating affordability and economic conditions in Canada, these apps are seeing growing use, with more people turning to the platforms as a source of supplementary income — in addition to their main source of income. There are also reports that a growing number of people in the country are turning to app-based gig work as their main job.

The new regulations do not apply to other types of gig workers, such as freelance writers, musicians, and dog walkers.

Recent surveys suggest that as of 2023, 38% of people in BC used ridehailing apps in the past year, and 46% used food delivery apps.

The provincial government first announced its proposed policy changes for app-based gig workers in November 2023.

You might also like:
• BC gig workers will finally benefit from basic employment standards
• Hundreds of thousands of Canadians are resorting to gig work as their main job: report
• Opinion: BC government is protecting the flexibility that ride-hailing drivers value most
• Side hustle success: How to make more money in the gig economy
• Uber Canada drivers will soon know fare and destination before accepting ride