Postmates Settle Gig Workers’ Lawsuit for $ 1 Million


The Seattle Office of Labor Standards (OLS) announced earlier this week that Postmates will pay $ 1 million to settle a lawsuit with thousands of workers together.

Gig workers working in the Seattle area are celebrating after the city’s Office of Labor Standards (OLS) announced a $ 1 million settlement with Postmates, a third-party delivery app. The lawsuit was brought against Postmates for allegations that the company violated Seattle’s “Gig Worker Paid Sick and Safe Time (PSST)” order. Of the settlement, $ 949,815.49 will go to “back wages, interest, damages and civil penalties” for 1,646 workers together. Another $ 22,260.40 will be paid in fines to the city.

Graphic of the delivery driver; image courtesy of mohamed_hassan via Pixabay,

What is the Gig Worker Paid Sick and Safe Time (PSST) Order? In many cases, concert workers have little protection. Well, the ordinance went into effect last July after city council voted unanimously to pass it. In effect, “allows drivers of third-party delivery apps like Postmates to access paid sick leave – one day off for every 30 calendar days worked, accrued retroactively through October 2019 (or whenever every worker started working). In addition to that, it “allows concert workers to use the PSST in 24-hour increments to take care of themselves or a family member for health reasons, life-related situations. domestic violence or sexual assault, or if a loved one’s school or place of care has been closed. Under the ordinance, concert workers “can use up to three days of sick leave paid before being required to produce a medical certificate or other proof of care, with an allowance recalculated each month to reflect changes in income. “

An investigation into the violations began last fall when the Office of Labor Standards examined complaints from local workers over concerns that “Postmates were not adequately instituting these benefits and allegedly violated several other aspects of the law. law, including failure to provide them with a police notice or their sick leave balance, ”the lawsuit noted.

It is important to note that Uber acquired Postmates in December 2020. While commenting on the settlement announcement, Uber issued the following statement:

“While these issues arose prior to finalizing our purchase of Postmates, we appreciate the Office of Labor Standards ‘close coordination with us to correct any outstanding issues… We have worked tirelessly to ensure that Postmates workers’ [sic] the platform has obtained the paid sick and safety leave it was entitled to, and we look forward to continuing our partnership with OLS.

OLS said workers affected by the recent settlement should expect to receive payments within 30 days.

This is not the first time Postmates have come under fire for breaking the rules for paying gig workers. In fact, in September 2020, Postmates and DoorDash were ordered to pay more than $ 350,000 “in restitution to drivers after the city’s risk premium mandate came into effect this summer.” While DoorDash paid over $ 111,435 to 2,998 Seattle concert workers, Postmates paid 2,975 Seattle concert workers $ 250,515.


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