Largest Settlement in OLS History under Gig Worker Premium Pay Ordinance
For Immediate Release
Contact: Cynthia Santana
Phone: 206-256-5219
Email: cynthia.santana@seattle.gov
Seattle Office of Labor Standards Reaches $3.3 Million Dollar Settlement with Uber Eats for Alleged Violations of the Gig Worker Premium Pay Ordinance
Largest Settlement in OLS History under Gig Worker Premium Pay Ordinance
Seattle, WA – (October 13, 2022) – The Office of Labor Standards (OLS) announces a settlement with Uber Eats, a large food delivery network company, for alleged violations of the Gig Worker Premium Pay Ordinance. Uber Eats agreed to pay a total financial settlement of $3,333,088.30 to 10,467 gig workers, and $2,560.90 in fines to the City of Seattle. This settlement marks one of the largest under the Covid-19 Gig Worker Protections Ordinances enacted in 2020 and the largest under the Gig Worker Premium Pay Ordinance in OLS history.
The Gig Worker Premium Pay Ordinance requires covered Food Delivery Network Companies (FDNCs) to pay gig workers additional compensation, called “premium pay,” for online delivery orders with pick-up or drop-off points in Seattle. Premium pay is in addition to compensation, bonuses, commissions, and tips owed to a gig worker for services provided.
OLS alleged that Uber Eats failed to pay premium pay when workers went to pick-up locations and the locations were closed or the customers had cancelled or already picked up their orders, and when workers picked up and delivered items from certain drug stores in Seattle.
OLS also alleged that, for 14 days in 2022, the company paid drivers $0.025 per online order rather than the required $2.50 in premium pay due to a software glitch.
“When Seattle’s gig worker premium pay ordinance was passed, we worked over a few weeks to build an entirely new payment system to comply with the law in a timely manner. While the vast majority of workers received their premium pay without any issues, we’re grateful that the Seattle Office of Labor Standards worked in partnership with us to immediately correct certain technical glitches, pay all premium pay owed to the workers, and improve our systems to ensure accurate and prompt payments in the future,” said Zahid Arab, Uber’s Public Affairs Manager for the West Region.
“I’m thankful my voice was heard and so many others that have been impacted were heard as well too. It’s important that gig workers are paid fairly and that we stand up for our rights. Thank you, Seattle OLS!” said Antonio Torres, Uber Eats worker.
“The Office of Labor Standards has been a staunch advocate for the workers in the gig economy helping us reclaim money that we have been owed for the work that we do,” said Sarah Fletcher, Uber Eats worker. “As a gig worker who has driven for many ride share and delivery companies, the implementation of the Seattle Premium Pay for Gig Workers has helped improve the hourly earnings for individuals who perform this work.” Fletcher further stated, “The regular delivery pay per delivery averages around $2-3 dollars per delivery and most drivers can only do three deliveries per hour. This makes the hourly rate around $6 to $9 per hour. The Seattle Premium Pay increased the per delivery compensation by $2.50 per delivery and it was paid regardless of customer gratuity. This compensation has a direct effect on a worker’s ability to earn and afford gas and maintenance for our vehicles, which we are not compensated for by companies operating in the gig economy.”
“Since the start of the Covid-19 pandemic, gig workers have played a key role in Seattle’s economy and deserve to have protections such as premium pay. Premium pay recognizes that gig workers have and continue to risk their physical well-being every day as they complete their work. This settlement impacted the most gig workers of any of our investigations of the Gig Worker Premium Pay Ordinance — more than ten thousand gig workers in total. Until the Covid emergency is declared over on October 31st, FDNCs need to continue to comply with the requirements of this law and the Gig Worker Paid Sick and Safe Time Ordinance,” said Steven Marchese, OLS Director.
The Gig Worker Premium Pay Ordinance is effective from 8:30 PM on June 26, 2020 until the end of the Covid-19 civil emergency on October 31, 2022. Gig workers have up to three years from the date of alleged violation to file a complaint with OLS or to take other legal action. For more information on the Gig Worker Premium Pay Ordinance please click here.
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