Amazon’s $3.7M Settlement: Resolving Labor Disputes in Seattle’s Gig Worker Ordinance

Amazon has reached a settlement with the City of Seattle’s Office of Labor Standards (OLS), agreeing to pay over $3.7 million to resolve claims related to alleged violations of ordinances protecting gig and app-based workers during the pandemic.

According to OLS, Amazon was accused of only providing premium pay and paid sick and safe time (PSST) to workers performing deliveries for Amazon Flex’s food or grocery business lines, neglecting workers who conducted package deliveries from Amazon’s warehouses.

Amazon Flex relies on independent contractors who use their own vehicles to deliver items for Amazon’s various business lines.

Despite denying the allegations, Amazon will pay a total of $3,777,924.10, including settlement payments and credits to 10,968 affected workers, as well as $20,000 in fines to the City of Seattle.

The violations involved three city ordinances: Gig Worker Premium Pay, Gig Worker Paid Sick and Safe Time, and App-Based Worker Paid Sick and Safe Time.

OLS claimed that Amazon failed to provide premium pay to Amazon Flex gig workers for deliveries in Seattle that were not for its food or grocery business lines, in violation of the Gig Worker Premium Pay ordinance.

Furthermore, OLS alleged that Amazon Flex did not establish an accessible system for gig workers to request and use PSST for workers not delivering for its food or grocery business lines, violating the Gig Worker Paid Sick and Safe Time and App-Based Worker Paid Sick and Safe Time ordinances.

Mayor Bruce Harrell emphasized the importance of fair pay and protections for gig workers who have been essential in providing services such as grocery and food delivery during the pandemic.

The Gig Worker Premium Pay and Gig Worker PSST ordinances were temporary measures enacted during the pandemic to ensure gig workers had access to additional pay and sick leave benefits. With the expiration of the emergency order on Oct. 31, 2022, these ordinances are no longer in effect.

The settlement with Amazon Flex marks the second-largest in OLS history, following a similar agreement with Uber Eats earlier in the year.

Affected Amazon Flex workers are expected to receive settlement payments starting around Jan. 1, according to OLS.

Update: Amazon issued a statement to GeekWire, stating their compliance with Seattle laws regarding paid sick and safe time for delivery partners and expressing a commitment to improving customer and driver experiences.