SEATTLE — The food delivery company Postmates paid nearly $1 million to settle a lawsuit with the City of Seattle over allegations the business violated Seattle's Gig Worker Paid Sick and Safe Time Ordinance (PSST).
Seattle's PSST Ordinance was passed in 2012 and requires employers to give employees paid time off to care for themselves or a family member, if a family member's school or childcare service has closed, or when a place of business has been closed by public health officials or closed for any health or safety reason.
Numerous workers complained to Seattle's Office of Labor Standards (OLS) that Postmates failed to provide workers with paid sick and safe time, failed to notify workers of the company's PSST policy and failed to notify workers of their PSST balance, according to a release from OLS.
Postmates paid $949,815 in back wages, interest, liquidated damages and civil penalties to 1,646 gig workers and an additional $22,260 in fines to the City of Seattle.
“OLS is pleased to see Postmates’ willingness to correct noncompliance issues with Seattle’s labor standards. 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,” said OLS Director Steven Marchese.
Postmates was acquired by Uber Technologies before the lawsuit was settled. The company said it appreciated OLS's help in correcting any outstanding issues.
"We’ve worked tirelessly to ensure that workers on the Postmates’ platform got the paid sick and safe time to which they were entitled, and we look forward to our continued partnership with OLS,” said Zahid Arab, Public Affairs Manager for Uber.
