THE Province has finalized regulations to provide fairness, minimum-wage measures and basic protections for app-based ride-hailing and delivery workers in British Columbia.
The regulations, a first in Canada, will come into effect on September 3. They will apply to those who work for apps such as Uber, Lyft, Uber Eats, SkiptheDishes, DoorDash and others.
“All companies should be providing basic fairness like minimum wage for their workers,” said Harry Bains, Minister of Labour, on Wednesday. “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.”
The final regulations are a product of years of engagement with workers, platform companies, labour organizations, business associations, the public and others. They create balanced solutions to the unique challenges of gig work, addressing workers’ priorities while ensuring app-based ride-hailing and delivery services remain available and affordable in B.C.
“Too many workers in this industry are putting in long hours and being paid less than the minimum wage,” said Janet Routledge, Parliamentary Secretary for Labour. “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 regulations address the top concerns raised by workers, including:
* Low and unpredictable pay: The regulation sets a minimum wage for engaged time, and a minimum per-kilometre vehicle allowance to compensate workers for their vehicle expenses.
* Lack of workers’ compensation: All ride-hailing and delivery workers will be covered through WorkSafeBC.
* Lack of transparency: Companies must allow workers to see the locations and estimated pay associated with a job before workers accept it.
* Unfair “deactivations” and suspension: Companies must tell workers why they are being suspended or terminated. If they are terminated without cause, they must be given notice or compensation.
* Tip protection: Companies must pay 100% of tips provided by the customer to the worker.
The final regulations will be posted in the coming days. These new worker protections represent a starting point in addressing the challenges associated with this relatively new way of working. Following implementation, the ministry will monitor the sector to see if adjustments are needed in the future.
Quick Facts:
* The new regulations apply to ride-hailing and delivery workers who accept assignments through a third-party app.
* They do not apply to other types of gig workers, such as freelance writers, musicians or dog walkers.
* Government estimates there are approximately 11,000 ride-hailing drivers and 35,000 delivery workers in B.C.
* According to Pollara Strategic Insights, in 2023, 38% of people in B.C. used rideshare apps in the past year, and 46% used food-delivery apps.
Learn More:
For more information about the consultation, visit:Â https://engage.gov.bc.ca/
BACKGROUNDER
New employment standards, protections for ride-hailing, delivery workers
Minimum wage:
* B.C. is establishing a minimum wage of $20.88, which is 120% of B.C.’s general minimum wage (currently $17.40) and apply it to engaged time.
* Engaged time begins when a worker accepts an assignment through its completion.
* Engaged time does not include the time spent waiting between assignments. This is the rationale for adding a 20% premium.
* Platform companies will top up the difference when the earnings paid in a pay period do not meet the minimum earnings standard for the engaged time worked.
* Tips are not included in the minimum earnings calculation.
* Like other minimum wages in B.C., this minimum wage will increase annually by the rate of inflation.
Expenses:
* The regulations establish an additional compensation standard to compensate workers for the costs they incur when using a personal vehicle for work, during engaged time.
* $0.45 per-km for ride-hailing assignments.
* $0.35 per-km for delivery assignments, including for e-bikes or scooters.
* The rates are based on the estimated per-km cost of operating a vehicle in B.C.
* The rates are higher for ride-hailing as law requires these workers to use vehicles no more than 10 years old, while delivery workers can use vehicles of any age.
Tip protections:
* Prohibit platform companies from withholding tips or making deductions from tips.
Pay transparency:
* Ensure that when platform companies offer an assignment to a worker, that worker can see the estimated earnings for completing the assignment.
* Platform companies will also be required to provide workers with wage statements every pay period so workers can ensure they are paid correctly.
Destination transparency:
* Platform companies will be required to provide all pickup and delivery locations (within 300 metres) when offering an assignment to a worker. Workers will also be provided the final destination when the offer is accepted.
* This will allow workers to assess the desirability and safety of assignments before accepting them.
Suspensions and terminations:
* Platform companies will be required to inform a worker in writing of the reason for a suspension or deactivation of their account.
* Companies may no longer suspend workers indefinitely. In most cases when workers are suspended, within 14 days companies must either reinstate the worker or terminate their account.
* Platform companies are required to give written notice or compensation for length of service if they want to terminate a worker unless there is just cause for the termination.
Workers’ compensation coverage:
* Workers’ compensation coverage from WorkSafeBC will apply to ride-hailing and delivery workers.
* Workers will be eligible for workers’ compensation benefits, including vocational rehabilitation services, for work-related injuries.
* Platform companies will be responsible for:
* registering for coverage with WorkSafeBC and paying premiums;
* following health and safety rules to keep workers safe;
* reporting injuries and diseases; and
* investigating significant incidents.
