Uber will pay $3.4 million in a settlement in a wage theft case over the company’s adherence to Seattle’s paid sick-leave law.
The Seattle City Council added the new protections for gig workers last summer including food delivery workers who became increasingly vital during the COVID-19 crisis.
The agreement includes $1.3 million in back pay, interest, damages, and penalties for more than 2,300 workers, plus $2.2 million in payment for unused paid time off to 15,000 workers.
Seattle labor leaders touted the victory. “Over 15,000 drivers will benefit from the largest settlement agreement in the history of the Seattle Office of Labor Standards,” a press release from Teamsters Local 117 read.
“My administration will fight for working people, not corporate CEOs,” City Council president and mayoral candidate Lorena Gonzalez said in the PR statement. “I started my career as a civil rights attorney going after greedy corporations for wage theft, and as Mayor I will make sure we use every means available to claw back stolen wages and stolen time because working people should have the means to take care of, and spend time with, those they love.”
The gig worker bill was sponsored by citywide councilmember Teresa Mosqueda who is seeking to retain her seat at City Hall.
Uber, meanwhile, says the settlement shows that the company is committed to improvements in labor standards for gig workers while reminding of the cost of implementing new laws.
“When Seattle’s Paid Sick and Safe Time for Gig Workers Ordinance was passed last summer, we worked over a few weeks to build an entirely new payment system to comply with the law in a timely manner,” an Uber spokesperson said. “While the vast majority of workers claimed their Paid Sick and Safe Time without an issue, we’re grateful that the Office of Labor Standards worked in partnership with us as we improved our systems to ensure accurate and prompt payments.”
Under the settlement, 15,000 of Uber’s Seattle drivers will receive at least one day of sick pay and thousands will get payouts of back pay.
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