As of September 3, 2024, British Columbia has implemented a new minimum wage for gig workers, marking a significant change in the province’s labor landscape.
This decision, a first of its kind in Canada, is poised to benefit thousands of workers employed by app-based companies such as Uber, Lyft, DoorDash, and SkipTheDishes.
BC updates gig workers will now have basic employment requirements and protections, including a significant boost in the minimum pay, thanks to these improvements.
It reflects the growing recognition of the importance of fair wages and better working conditions for workers in the gig economy.
The New Wage Structure for BC Updates Gig worker
The British Columbia government, led by Premier David Eby, has introduced a minimum wage of $20.88 per hour for gig workers. This new rate ensures that drivers and couriers, whose earnings largely depend on unpredictable customer demand, will be guaranteed fair compensation for their time on the road.
It is calculated by the time from the moment an employee accepts an assignment until it is finished—known as “engaged time”—used to determine this minimal wage. The 20% premium has been added because waiting time in between assignments is not factored into this computation. If an employee’s earnings fall short of the minimum wage during a pay period, platform companies will have to make up the difference in their compensation.
To assist workers in covering costs, the new regulations create a minimum car allowance of 35 to 45 cents per kilometer. Ride-hailing and delivery workers will earn the minimum wage from the time they accept an assignment until it’s completed.
“I’m really, really happy that we were able to provide the basic minimum standards that all workers deserve to BC updates gig worker,” B.C. Labour Minister Harry Bains stated.
The introduction of this minimum wage provides a safety net for BC updates gig worker who often face inconsistent income due to the nature of their work.
Prior to this change, gig workers were paid on a per-task basis, which led to earnings that could vary significantly from day to day.
“We crafted these regulations specifically to deal with the ride-hail and food delivery workers because of the uniqueness of their workplaces,” Bains said, adding the regulations may continue to change.
With the new provincial minimum wage of $17.40, BC updates gig workers are now assured of earning at least $20.88 per hour, even during slow periods when they may not receive many orders or rides.
More changes for the protection of BC updates gig workers
In addition to the wage increase, the new regulations address compensation for the expenses BC updates gig worker face when using their personal vehicles for work. Ride-hailing workers will receive $0.45 per kilometer, while delivery workers will be compensated $0.35 per kilometer.
These rates are intended to cover vehicle operating costs in B.C., with higher rates for ride-hailing due to the legal requirement for vehicles to be under 10 years old. The regulations also introduce protections for workers’ tips, preventing platform companies from withholding or deducting any portion of them.
The new regulations highlight transparency by requiring platform companies to reveal estimated earnings when offering a task to workers. For the first time, BC updates gig workers will also have transparency regarding destinations. Companies must provide all pickup and delivery locations within 300 meters before a worker accepts the task. Once accepted, the final destination must be disclosed, allowing workers to assess the safety and appeal of the job.
Regarding job security, the new regulations mandate that platform companies provide workers with written reasons for any suspension or termination. Companies are no longer allowed to suspend workers indefinitely and must either reinstate them or terminate their accounts within 14 days. Workers terminated without just cause are entitled to written notice or compensation based on their length of service.
Additionally, WorkSafeBC’s coverage will now extend to ride-hailing and delivery workers, granting them access to compensation benefits, including vocational rehabilitation services, for work-related injuries.
Why This Change Was Necessary
BC updates gig workers have long been calling for better wage protections. They frequently find themselves earning far less than the provincial minimum wage because their compensation is dependent on demand. Many workers face high expenses, such as fuel and vehicle maintenance costs, which further cut into their earnings. The nature of gig work often requires workers to be on-call without receiving pay during slow periods, adding to the financial uncertainty.
The finalized regulations are the result of years of consultation with workers, platform companies, labor groups, business associations, the public, and other stakeholders. They offer balanced solutions to the distinct challenges of gig work, addressing worker concerns while ensuring that app-based ride-hailing and delivery services continue to be accessible 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.”
This wage change addresses these concerns by ensuring that workers are compensated fairly for all the time they spend working, including periods when there are fewer ride requests or delivery orders.
Mixed Reactions to New Regulations Among BC Updates Gig Workers
While the new regulations in B.C. include a minimum wage of $20.88, workers’ compensation coverage, and measures for pay transparency, some BC updates gig workers remain skeptical.
Kuljeet Singh, an Uber driver in the Metro Vancouver area, expressed disappointment, stating, “It’s good the legislation is coming, but this is not the legislation we asked for.” Singh often waits hours for ride requests and works more than 13 hours daily, yet he feels the new minimum wage doesn’t address the core issue of excessive waiting times.
He advocates for a cap on the number of drivers per app in a city, believing that fewer drivers would lead to more frequent rides and shorter wait times. Despite appreciating the transparency and compensation provisions, Singh emphasized that he still struggles to make a living, saying, “I can’t survive on engaged time.”
While there may be challenges for companies adapting to the new wage structure, the benefits to workers and the potential for wider adoption across Canada signal a positive step towards improving the gig work environment. For the thousands of drivers and couriers who rely on gig work as their primary source of income, this new minimum wage is a welcome and much-needed change.
