Postmates To Pay Nearly $1M To Gig Workers In Seattle Settlement

SEATTLE — Postmates has agreed to settlement terms with Seattle's Office of Labor Standards over allegations it failed to comply with the city's Gig Worker Paid Sick and Safe Time ordinance. The Uber-owned food delivery service will pay close to $950,000 in back wages, interest, damages and penalties to more than 1,600 Seattle gig workers, and another $22,000 in fines to Seattle, officials said Wednesday.

"OLS is pleased to see Postmates' willingness to correct noncompliance issues with Seattle's labor standards," said Steven Marchese, the OLS director. "As more labor standards issues arise in the gig worker industry, it's important these large companies acknowledge their mistakes and take the necessary measures to make their workers whole. Gig worker protections are vital to support workers and keep Seattle's gig economy thriving."

According to the OLS, an investigation into Postmates began last year after several workers alleged the company failed to notify them about the policy or their available balance. The Seattle ordinance requires that gig workers accrue a full day of sick leave for every month worked, which can be used to care for themselves or members of their household.

"While these issues arose before our purchase of Postmates was finalized, we appreciate the Office of Labor Standards' close coordination with us to correct any outstanding issues," said Zahid Arab, public affairs manager for Uber. "We've worked tirelessly to ensure that workers on the Postmates' platform got the paid sick and safe time to which they are entitled, and we look forward to our continued partnership with OLS."

News of the settlement was also welcomed by workers' advocacy groups Wednesday.

"This settlement is further proof that Seattle is leading the way on workers' rights: workers are winning innovative, first-in-the-nation laws like sick pay for gig workers, and we're pairing those laws with robust enforcement to ensure the rights workers win are real," said Danielle Alvarado, legal director at the Fair Work Center. "Postmates is paying nearly 1 million dollars, which sends a clear message to food delivery workers across the city: you have rights, and Seattle has your back."