By Aneesa Grant, The Seattle Medium
The Seattle Office of Labor Standards (OLS) has completed its investigation into Grubhub for alleged violations of the Gig Worker Paid Sick and Safe Time (PSST) Ordinance and the Gig Worker Premium Pay Ordinance. In a significant development, the company has reached a settlement agreement regarding these allegations.
Grubhub has agreed to pay a comprehensive financial remedy of $1,529,078.16 to 4,580 affected workers, along with a fine of $12,461.76 to the City of Seattle.
The allegations against Grubhub include:
• Failure to establish an accessible PSST system for certain gig workers who experienced difficulties in accessing PSST benefits when they activated the app but did not accept deliveries.
• Neglecting to provide monthly notices of PSST balance information to gig workers for an extended period of almost twelve months.
• Failure to pay premium pay to gig workers during the initial implementation of the law in 2020.
• Negligence in paying premium pay to certain gig workers who performed tasks within Seattle, including attempting to pick up orders from closed restaurants.
Greg J., a Grubhub worker, expressed his gratitude for the Office of Labor Standards’ efforts, stating, “The Office of Labor Standards has been instrumental in helping workers stand up for our legal rights and obtain what we are legally owed by the companies we work for. Without the enforcement efforts of OLS, workers would have essentially no means of holding these companies accountable.”
Grubhub, a nationwide food delivery network company, employs thousands of gig workers in Seattle.
The Gig Worker Premium Pay Ordinance and the Gig Worker PSST Ordinance have resulted in substantial annual assessments by OLS:
• In 2023 (to date), OLS has assessed $4,024,947.51 in remedies to workers and the City of Seattle.
• In 2022, OLS assessed $4,730,932.27 in remedies.
• In 2021, OLS assessed $4,604,496.48 in remedies.
• In 2020, OLS assessed $465,057.80 in remedies.
Since the enactment of the two Covid emergency ordinances in 2020, OLS has assessed approximately $13,825,434.06 in remedies, with the majority of these funds directed towards workers.
OLS Director Steven Marchese acknowledged the significance of these settlements, particularly in light of Labor Day, emphasizing the importance of workers’ rights.
“The majority of the remedies from these settlements will go back to workers, reminding us why we need labor standards.,” said Marchese.
The Gig Worker Paid Sick and Safe Time Ordinance came into effect on July 13, 2020, and initially applied to gig workers of Food Delivery Network Companies (FDNC) and Transportation Network Companies (TNC) with 250 or more gig workers worldwide.
As of January 1, 2023, TNC workers are no longer covered by Seattle’s Gig Worker PSST Ordinance but are now protected by a new state-paid sick leave law.
Beginning on May 1, 2023, FDNC workers are no longer covered by the Gig Worker PSST Ordinance but are instead covered by a new law known as the App-Based Worker Paid Sick and Safe Time Ordinance, which makes permanent many of the rights and obligations previously under the temporary Gig Worker PSST Ordinance.
Starting on January 13, 2024, all app-based workers employed by network companies with more than 250 workers will fall under the purview of the App-Based Worker PSST Ordinance.
