Seattle reaches $3.3M settlement with Uber Eats over gig worker pay violations

The Seattle Workplace of Labor Requirements introduced Thursday it reached a settlement price greater than $3.3 million with Uber Eats for alleged violations of the Gig Employee Premium Pay Ordinance.

The ordinance requires meals supply corporations like Uber Eats to pay their employees extra compensation referred to as “premium pay” for supply orders with pick-up and drop-off factors inside Seattle metropolis limits.

OLS alleged that Uber Eats failed to provide employees premium pay when employees went to pick-up places and the places had been closed, or when clients had canceled or already picked up their orders. Uber Eats additionally allegedly failed to provide employees premium pay for supply orders from sure drugstores in Seattle.

OLS additionally alleged that over a 14-day interval in 2022, Uber Eats solely paid drivers $0.025 per on-line order as an alternative of the required $2.50 in premium pay on account of a software program glitch.

In whole, Uber Eats has agreed to pay a settlement of $3,333,088.30 to 10,467 gig employees and $2,560.90 in fines to the town of Seattle.

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“When Seattle’s gig employee premium pay ordinance was handed, we labored over a couple of weeks to construct a completely new cost system to adjust to the regulation in a well timed method,” mentioned Zahid Arab, Uber’s public affairs supervisor for the west area. “Whereas the overwhelming majority of employees obtained their premium pay with none points, we’re grateful that the Seattle Workplace of Labor Requirements labored in partnership with us to instantly right sure technical glitches, pay all premium pay owed to the employees and enhance our programs to make sure correct and immediate funds sooner or later.”

The Gig Employee Premium Pay Ordinance will expire with the COVID-19 civil emergency in Seattle on Oct. 31.

Gig employees have as much as three years from the date of the alleged violation to file a grievance with OLS or take different authorized motion.