Seattle Gig Workers To Receive $15M In Uber Eats Settlement

The Seattle Office of Labor Standards reached an unprecedented $15 million settlement with Uber Eats over alleged violations of two laws protecting gig workers.

Uber Eats will pay 16,120 Seattle workers a collective $15 million in back pay, interest, liquidated damages and civil penalties. The company will pay the city an additional $33,680 in fines. Notably, Uber Eats denied all allegations, but agreed to resolve all claims.

The Seattle Office of Labor Standards first opened an investigation into Uber Eats on Nov. 6, 2023, alleging Independent Contractor Protections violations. The law ensures pay transparency by requiring companies to notify workers how much a job pays. This was the office’s first-ever investigation under the ordinance.

The initial investigation stemmed from a complaint by a worker with Uber Eats’ Boost promotion, in which the company advertised added earnings on top of delivery fares and allowed workers to multiply a worker’s base fare by a specified number shown on a map. The Seattle Office of Labor Standards took the position that Uber Eats did not disclose that the Boost multiple applied only to a portion of the worker’s fare.

Some workers took many transactions during the Boost time period, which impacts how much they will receive in settlements. According to Seattle Office of Labor Standards Director Steven Marchese, some workers will receive thousands of dollars in settlements depending on their specific participation in the use of the program.

The Seattle Office of Labor Standards opened a second investigation into Uber Eats the following year, alleging violations of the App-Based Worker Minimum Payment ordinance – the office’s second-ever investigation under the ordinance – which took effect last year.