Starting September 3, app-based ride-hailing and food delivery workers across British Columbia will experience significant improvements in their working conditions due to new regulations. These changes will introduce essential employment standards and protections for gig workers, including a notable increase in the minimum wage.
Gig Workers’ Minimum Wage Boost
According to the new regulations, the minimum wage for ride-hailing and food-delivery workers will be established at 120% of B.C.’s current minimum wage.
With the provincial minimum wage currently set at $17.40 per hour, gig workers will soon earn a minimum of $20.88 per hour. This rate applies to those working for platforms like Uber Eats, Instacart, SkipTheDishes, Lyft, and Uber.
The minimum wage is calculated based on “engaged time”—the period from when a worker accepts an assignment until its completion. Time spent waiting between assignments is not included, which is why a 20% premium has been added.
Platform companies will be required to top up workers’ pay if their earnings fall below the minimum wage standard during a pay period.
Extra Compensation and Benefits
In addition to the wage increase, the new regulations also provide compensation for expenses gig workers incur while using their personal vehicles for work.
Ride-hailing workers will be reimbursed $0.45 per kilometre, while delivery workers will receive $0.35 per kilometre.
These rates are intended to cover the costs of operating a vehicle in B.C., with higher rates for ride-hailing due to the legal requirement that vehicles must be less than 10 years old.
Furthermore, the regulations include protections for workers’ tips, prohibiting platform companies from withholding or deducting any portion of them.
Openness and Worker Rights
The new regulations prioritize transparency, requiring platform companies to disclose the estimated earnings for a task when offering it to a worker.
Additionally, workers will receive detailed wage statements with each pay period to verify their earnings.
For the first time, gig workers will also have destination transparency. Platform companies must provide pickup and delivery locations within 300 meters before a worker accepts an assignment.
Once the task is accepted, the final destination must also be revealed, enabling workers to assess the safety and desirability of the job.
Worker Safeguards and Compensation Coverage
Regarding job security, the new regulations mandate that platform companies provide written notice to workers explaining the reasons for any suspension or termination.
Companies are no longer allowed to suspend workers indefinitely; they must either reinstate them or terminate their accounts within 14 days.
Workers who are terminated without just cause are entitled to written notice or compensation based on their length of service.
Additionally, the regulations ensure that workers’ compensation coverage from WorkSafeBC will extend to ride-hailing and delivery workers.
This means that workers will be eligible for compensation benefits, including vocational rehabilitation services, for any work-related injuries.
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