On June 12, 2024, the Province announced that it has finalized regulations to provide minimum-wage measures and basic protections for app-based ride-hailing and delivery workers in British Columbia. These measures are a first in Canada and provide protections to “gig workers” who carry out ride-hailing and delivery work through various online platforms, such as Uber, Lyft, DoorDash, Skip the Dishes, and Uber Eats, among other platforms.
Gig work is appealing as it provides workers independence and the flexibility to set their own hours. However, gig work in the form of ride-hailing and delivery currently comes with risks to the worker, including the risk of facing low and unpredictable wages and the lack of workers’ compensation coverage if injured on the job.
In a survey conducted by the Ministry of Labour from November 23, 2022 to January 6, 2023, current and former app-based ride-hailing and food-delivery workers conveyed the following pay concerns: (1) no reimbursement for fuel or vehicle costs; (2) pressure to accept low-pay assignments; (3) pressure to maintain a high order acceptance rate; (4) low per-trip/per-delivery pay; (5) no pay while waiting for assignments; (6) delivery fees do not always reflect long waits in traffic, late passengers, or slow restaurants; (7) tips are not always received; and (8) transparency of pay for assignments.
These gig-workers also expressed the following safety risks and concerns: (1) the ability to refuse unsafe work; (2) lack of employer-based workers’ compensation; (3) not having access to sick pay; and (4) lack of recourse for unfair termination/deactivations.[1]
The regulations, which come into effect on September 3, 2024, address some of these concerns. In a news release on June 12, 2024, the Province informed that the following employment standards and protections will be implemented for ride-hailing and delivery workers.[2]
A minimum wage of $20.88 for ride-hailing and delivery workers will come into effect and applies to engaged time, which begins when a worker accepts an assignment through its completion. This hourly rate is 120% of B.C.’s current general minimum wage of $17.40. The wage will not apply to the time the worker spends waiting between assignments, which is the rationale behind the 20% premium. Ride-hailing and delivery workers will be compensated for costs they incur when using a personal vehicle for work during engaged time. This includes $0.45 per-km for ride-hailing assignments and $0.35 per-km for delivery assignments, including for e-bikes or scooters.
Workers will have better “tip protection” as companies will be prohibited from withholding tips or making deductions from tips.
Workers will have greater pay transparency. The new regulations will ensure 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 the workers can ensure they are paid correctly.
The safety of workers will also be improved through destination transparency. Workers will be able to better assess the desirability and safety of assignments before accepting them as 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.
Ride-hailing and delivery workers will also be entitled to standards and protections regarding suspensions and terminations.
Platform companies will be required to provide workers written reasons for a suspension or deactivation of their account.
Companies will no longer be able to suspend workers indefinitely. In most cases when workers are suspended, companies will be required to either reinstate the worker or terminate their account within 14 days. Additionally, companies will be required to give written notice or compensation for length of service if they wish to terminate a worker, unless just cause exists for the termination.
Ride-hailing and delivery workers will also gain workers’ compensation coverage from WorkSafeBC. 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.
These substantial changes create rights, standards and protections to a relatively new class of worker, the “gig worker”. These changes also create responsibilities, expenses and liabilities for platform companies. This is undoubtedly a significant shift in British Columbia employment law and we are eager to review the final regulations once posted by the Province.
[1] What We Heard:App- or Platform-Based Ride Hail & Food-Delivery Work EngagementB.C. Ministry of Labour (gov.bc.ca)
[2] Fair pay, basic protections coming for gig workers | BC Gov News
Come September 2024, if you have any questions about your entitlements as a ride-hailing or delivery worker, or on your responsibilities as a platform company, please contact us at Ascent Employment Law for more information. We are here to help!
