§ 14.33.050 — Minimum compensation

14.33.050 - Minimum compensation

For each TNC dispatched trip, a TNC shall compensate TNC drivers by providing at least the equivalent of: (1) the minimum per minute amount for passenger platform time under subsection 14.33.050.A.1 plus the minimum per-mile amount for passenger platform time under subsection 14.33.050.A.2; or (2) the minimum per trip amount for each TNC dispatched trip under subsection 14.33.050.A.4, whichever amount is greater. A. Minimum payment 1. Per minute amount. For each minute of passenger platform time on each trip, a TNC shall compensate TNC drivers at least the equivalent of the per minute rate divided by the passenger platform time utilization rate, except that in the first three months after January 1, 2021, the per minute amount shall be phased in according to a rate schedule filed by the Agency with the City Clerk. The minimum per minute amount during the three-month phase in period shall not fall below $0.32 per minute. a. Passenger platform time utilization rate. Subject to the provisions in subsection 14.33.050.B, the passenger platform utilization rate is 0.492. 2. Per mile amount. For each mile driven during passenger platform time on each trip, a TNC shall compensate TNC drivers at least the equivalent of the per mile rate divided by the passenger mileage utilization rate. Subject to the provisions in subsection 14.33.050.B, a. The per mile amount is $1.33. b. The per mile rate is $0.830. c. The passenger mileage utilization rate is 0.622. 3. The calculations described in this subsection 14.33.050.A are expressed in equation form as: [image omitted; see the official code] 4. Per trip amount. For each TNC dispatched trip, a TNC shall compensate TNC drivers a minimum per trip amount of at least $5. a. For the purposes of this subsection 14.33.050.A.4, "each TNC dispatched trip" includes but is not limited to a trip in which the TNC driver transports the passenger to the passenger's desired drop-off location, a trip cancelled by a passenger or the TNC unless the TNC refunds the passenger cancellation fee due to driver conduct, and a trip where the passenger does not appear at the passenger pick-up location. For trips involving multiple passengers picked-up from different locations, the minimum per trip amount applies to the period of time commencing when the TNC driver starts the trip in the driver platform after the first passenger enters the TNC driver's vehicle until the time when the TNC driver ends the trip in the driver platform after the last passenger exits the TNC driver's vehicle at the end of the trip. "Each TNC dispatched trip" does not include a trip cancelled by the TNC driver. b. Effective January 1, 2022, the minimum per trip amount paid to a TNC driver shall be increased on a percentage basis to reflect the rate of inflation and calculated to the nearest cent on January 1 of each year thereafter. The Agency shall determine the amount and file a schedule of such amount with the City Clerk. B. Adjustment of the per mile rate, passenger platform time utilization rate, and the passenger mileage utilization rate 1. Adjustment of the per mile rate. Beginning one year after January 1, 2021, and thereafter on January 1 of each year, the Director by rule may adjust the per-mile rate. In adjusting the per-mile rate each year, the Director shall consider the best available sources of data, which may include, but are not limited to: TNC driver surveys, data provided by TNCs, data provided by TNC drivers, data provided by passengers, data from other jurisdictions, data available through academic, policy, or community based organizations, and stakeholder interviews. The Director shall base the adjustment on an assessment of relevant factors or costs during the 12-month period ending in August. Provided however, that this adjustment shall not result in reduction of the per mile rate below $0.830. The Director may consider the following non-exhaustive factors or costs: a. Vehicle acquisition and financing costs; b. Depreciation; c. Lease payments; d. Maintenance and repairs; e. Vehicle cleaning; f. Tires; g. Gasoline (including all taxes thereon); h. Oil; i. Vehicle Insurance; j. License and vehicle registration fees; k. Cell phone and cell phone plans; l. Cost of medical, dental, and vision insurance; m. The amount of employer-side payroll taxes that TNC drivers must pay; n. The amount of businesses taxes that TNC drivers must pay; o. Business license fees that TNC drivers must pay; p. Rest breaks; and q. Any other cost or information the Director determines is necessary to further the purposes of this Chapter 14.33. If the Director does not adjust the per-mile rate in any given year, the per-mile rate shall be increased on a percentage basis to reflect the rate of inflation and calculated to the nearest cent on January 1 of each year. The Agency shall determine the amount and file a schedule of such amount with the City Clerk. 2. Adjustment of the passenger platform time utilization rate and the passenger mileage utilization rate. Subject to the provisions in subsection 14.33.030.B.2.a, the Director by rule may adjust the passenger platform time utilization rate or the passenger mileage utilization rate. The Agency shall provide notice to the public no less than three months before the effective date of any adjustment under this subsection 14.33.050.B.2. The purpose of any adjustment is to reflect changes in the percentage of time that TNC drivers spend in passenger platform time relative to the total time that TNC drivers spend in available platform time, dispatch platform time and passenger platform time or the percentage of miles TNC drivers drive during passenger platform time relative to the total miles TNC drivers drive during available platform time, dispatch platform time, and passenger platform time. The Director shall have discretion to determine a passenger platform time utilization rate or a passenger mileage utilization rate on an industry-wide basis or for each TNC covered by this Chapter 14.33. a. The Director shall not adjust the passenger platform time utilization rate or the passenger mileage utilization rate until three years after November 9, 2020. b. The Director may choose not to adjust the passenger platform time utilization rate or the passenger mileage utilization rate for any time period that the Director determines is necessary to further the purposes of this Chapter 14.33, including but not limited to while the combined total trips reported by all TNCs that originate in the City covered by this Chapter 14.33 is less than 3,000,000 per the most recent quarterly report received by the City under Section 6.310.540. c. Prior to beginning any assessment period on which the Agency will base a passenger platform time utilization rate or the passenger mileage utilization rate adjustment, the Agency shall provide reasonable notice to the TNCs and other stakeholders of the date on which the assessment period begins. d. In adjusting the passenger platform time utilization rate or the passenger mileage utilization rate, the Director may consider the following sources of information: 1) The best available sources of data, which may include, but are not limited to: TNC driver surveys, data provided by TNCs, data provided by TNC drivers, data provided by passengers, data from other jurisdictions, data available through academic, policy, or community based organizations, and stakeholder interviews; 2) Input from stakeholders on the method and time period for assessment or adjustment of the passenger platform time utilization rate or the passenger mileage utilization rate; and 3) Any other information the Director determines is necessary to further the purposes of this Chapter 14.33. e. The Director shall base any adjustment to the passenger platform time utilization rate or passenger mileage utilization rate on an assessment of relevant factors during an assessment period prior to the date of adjustment. The assessment period for the first adjustment of the passenger platform time utilization rate or passenger mileage utilization rate shall be 12 months in duration. The assessment period for any subsequent adjustment to the passenger platform time utilization rate or passenger mileage utilization rate shall be up to 12 months in duration. The Director may consider the following factors for the assessment: 1) The average and median amount of available platform time, dispatch platform time, and passenger platform time for TNC drivers; 2) The average and median mileage driven by TNC drivers during available platform time, dispatch platform time, and passenger platform time; 3) The average and median speeds driven by TNC drivers during available platform time, dispatch platform time, and passenger platform time; 4) The percentage of total trips that each TNC covered by this Chapter 14.33 represents; 5) The impact of the adjustment of the passenger platform time utilization rate or the passenger mileage utilization rate on TNCs, TNC passengers, and TNC drivers, including the impact on TNC driver earnings and work hours, the availability of TNC services, and any other factor the Director deems relevant. and 6) Any other information the Director determines is necessary to further the purposes of this Chapter 14.33. 3. The Agency shall file a schedule of such amounts described in this Section 14.33.050 with the City Clerk. C. Deductions 1. A TNC may only deduct compensation when the TNC driver expressly authorizes the deduction in writing and does so in advance for a lawful purpose for the benefit of the TNC driver. Any such authorization by a TNC driver must be voluntary and knowing. 2. Neither the TNC nor any person acting in the interest of the TNC may derive any financial profit or benefit from any of the deductions under this subsection 14.33.050.C. For the purposes of this subsection 14.33.050.C, reasonable interest charged by the TNC, or any person acting in the interest of a TNC, for a loan or credit extended to the TNC driver is not considered to be of financial benefit to the TNC, or any person acting in the interest of a TNC.

(Ord. 126189, § 2, 2020.)