Uber Eats will pay a record $15 million in back pay, interest and civil penalties to more than 16,000 Seattle workers after allegedly violating the city’s gig-worker protection laws. The company will also pay a $33,620 fine to the city.
It is the largest settlement in the history of Seattle’s Office of Labor Standards (OLS), which is responsible for investigating violations of the city’s labor laws.
“This historic $15 million settlement is a major win for workers and a strong reminder that in Seattle, we hold large companies accountable when they sidestep their responsibilities and shortchange workers,” said Mayor Bruce Harrell in a statement announcing the settlements.
OLS alleged that Uber Eats violated the pay transparency requirements of Seattle’s independent-contractor protections ordinance with its “Boost earnings multiplier” promotion. The OLS investigation began in November 2023.
The company promised additional earnings to workers delivering to busy locations and during busy times. OLS alleged that Uber Eats failed to disclose that the promotion applied only to a portion of the workers’ fares.
The company will pay $13.5 million to settle those claims with OLS.
OLS opened its second investigation in November 2024. The office concluded that Uber Eats violated Seattle’s app-based-worker minimum pay law, which requires that companies pay a minimum rate based on time worked and distance traveled, even when a job is cancelled.
OLS alleged that the company had failed to pay or was underpaying workers for cancelled jobs and had not provided all required information on electronic receipts and weekly reports.
Uber Eats is paying another $1.5 million to settle the second investigation.
Despite agreeing to the settlements, Uber Eats denies any allegations of wrongdoing in both cases.
The investigations stemmed from complaints filed by gig workers to OLS.
“If companies are unclear or fail to keep promises, workers in Seattle should know their rights and available recourse with OLS,” said OLS director Steven Marchese in a statement. “When workers come forward, OLS can help bring workplace injustices to light and put hard-earned money back where it belongs … in their pockets.”
