March 27, 2026 11:00AM 

# Per-Task Minimum Pay for Gig Workers? 

By [Jeffrey Miron](https://www.cato.org/people/jeffrey-miron) 

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In 2024, Seattle tried to raise wages for app-based workers by [requiring that](https://www.seattle.gov/laborstandards/ordinances/app-based-worker-ordinances/app-based-worker-minimum-payment-ordinance) they receive a per-task minimum pay.

By comparing earnings for Seattle workers before and after the law went into effect, a recent [study](https://www.nber.org/papers/w34545) finds that while the policy raised per-task wages,

> the increases in base pay per task were partially offset by a substantial reduction in average tips, a major component of delivery pay.

Moreover,

> drivers experienced more unpaid idle time and longer distances driven between tasks … \[And,\] the policy led to a reduction in the number of tasks completed by highly attached incumbent drivers, … completely offsetting increased pay per task and leading to zero effect on monthly earnings.

Yet again, over-zealous intervention backfires.

*Cross-posted from* [*Substack*](https://jeffreymiron.substack.com/p/immigration-restrictions-cause-enforcement)*.*

##### Related Tags 

[Economics](https://www.cato.org/economics), [Libertarianism](https://www.cato.org/libertarianism) 

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