For Immediate Release
Seattle Office of Labor Standards Reaches $1.6 million Dollar Settlement with DoorDash for Alleged Labor Standards Violations
26,502 Workers Impacted
Seattle, WA – (August 21, 2023) The Seattle Office of Labor Standards (OLS) investigated DoorDash, Inc. for alleged violations of the Gig Worker Paid Sick and Safe Time (PSST) Ordinance. DoorDash operates in multiple countries and has thousands of gig workers in Seattle.
The food delivery network company settled the allegations and agreed to pay a total financial remedy of $1,635,823.84 which included $500,064.13 to 648 workers, $8,629.62 in fines to the City of Seattle, and $1,127,130.06 in PSST credits to approximately 26,500 workers.
After receiving multiple worker complaints in 2022, OLS opened an investigation alleging DoorDash failed to:
- Establish an accessible PSST system for some gig workers to request and use PSST;
- Timely compensate some gig workers for use of PSST; and
- Provide a monthly notice of PSST balance information to all of its Seattle workforce over a period of two months.
“Us gig workers have been met with conditions during the pandemic that were often risky. Having someone to advocate for gig workers lets us know that we have support and a way to have a voice,” said Tessa C., DoorDash worker. “I am very grateful for this timely and judicious settlement. Thank you, Seattle City Council, for legislating PSST – for when we need a sick day.”
This is OLS’ second investigation of the company for alleged violations under the Gig Work PSST Ordinance. In a previous settlement in 2021, OLS alleged the company, as a successor to a previous hiring entity, failed to accurately credit some workers with PSST days from the previous hiring entity and failed to provide accurate notice of the average daily compensation rate. The total financial remedy included $15,504.31 to ten workers and DoorDash agreed to voluntarily pay out all remaining unused accrued PSST days to workers who worked for the previous hiring entity. A total of $144,931.63 was assessed to 891 workers.
The Gig Worker Paid Sick and Safe Time Ordinance went into effect on July 13, 2020, during the pandemic and applied to gig workers of Food Delivery Network Companies (FDNC) and Transportation Network Companies (TNC) of 250 or more gig workers worldwide. As of January 1, 2023, TNC workers are no longer covered by Seattle’s Gig Worker PSST Ordinance but are covered by a new state-paid sick leave law. As of May 1, 2023, FDNC workers are no longer covered by Seattle’s Gig Worker PSST Ordinance but are covered by a new law called the App-Based Worker Paid Sick and Safe Time Ordinance, which makes permanent many of the rights and obligations under the temporary PSST for Gig Workers Ordinance.
“Seattle has led the way in providing gig worker protections during the most crucial times of the pandemic when workers put their health and the health of their loved ones at possible risk,” said OLS Director Steven Marchese. “OLS will continue to enforce gig worker protections and all Seattle labor standards while providing support to businesses to ensure compliance.”
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