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

The Seattle Office of Labor Standards announced Thursday it reached a settlement worth more than $3.3 million with Uber Eats for alleged violations of the Gig Worker Premium Pay Ordinance.

The ordinance requires food delivery companies like Uber Eats to pay their workers additional compensation called “premium pay” for delivery orders with pick-up and drop-off points within Seattle city limits.

OLS alleged that Uber Eats failed to give workers premium pay when workers went to pick-up locations and the locations were closed, or when customers had canceled or already picked up their orders. Uber Eats also allegedly failed to give workers premium pay for delivery orders from certain drugstores in Seattle.

OLS also alleged that over a 14-day period in 2022, Uber Eats only paid drivers $0.025 per online order instead of the required $2.50 in premium pay due to a software glitch.

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

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