SEATTLE — Another major food delivery company has settled with the City of Seattle for over $1.5 million related to alleged violations of gig worker pay regulations.
Grubhub will pay a total of $1,529,078.16 to 4,580 impacted workers and $12,461.76 in fines to Seattle as part of a settlement with the city.
Seattle's Office of Labor Standards alleged the company failed to establish a Paid Sick and Safe Time (PSST) system for some gig workers, provide a monthly notice of gig workers' PSST balance for almost a year and allocate premium pay to certain gig workers immediately after the law took place, as well as those who attempted to pick up orders from restaurants that were closed.
Like Grubhub, DoorDash was dealt a $1.6 million fine for violations of PSST rules in August by the Office of Labor Standards in Seattle. Under the settlement, the food delivery network company will pay $1.1 million in Paid Sick and Safe Time credits to 26,500 workers, $500,064 to 648 workers and $8,629 to the city in fines.
The Office of Labor Standards opened the investigation following worker complaints in 2022 alleging that DoorDash failed to establish an accessible system for workers to request and use sick time. Additionally, workers alleged DoorDash failed to compensate workers in a timely fashion and didn't provide a monthly notice of paid sick and safe time balance information to all its Seattle workforce for two months.
Since two coronavirus pandemic emergency ordinances were enacted in 2020, almost $14 million in fines have been assessed to Seattle-area companies by the Office of Labor Standards.
