According to the Seattle Office of Labor Standards, more than 400 Seattle gig workers will receive nearly $120,000 in back payments following a settlement with Walmart Inc. over alleged violations of the city’s App-Based Worker Minimum Payment Ordinance.
The Office of Labor Standards announced Sept. 8 that Walmart Inc., doing business as Spark Delivery, agreed to pay $119,528.29 to 413 affected workers and an additional $2,455.52 to the City of Seattle to resolve the investigation.
OLS alleged that Walmart failed to provide workers with minimum payments required for offers, information about offers before workers accepted them, electronic receipts within 24 hours, weekly receipts and notices informing workers of their rights under the ordinance.
“Thanks to app-based workers coming forward with complaints, the OLS enforcement team was able to investigate and uncover multiple violations of the minimum payment law. By resolving this investigation with Walmart, OLS continues to hold companies accountable when they fail to comply with Seattle labor laws,” said OLS Director Steven Marchese.
Seattle’s App-Based Worker Minimum Payment Ordinance establishes minimum compensation requirements for certain app-based workers and requires covered companies to provide workers with information about offers and records showing how they were paid. The requirements are intended to provide workers with greater transparency about their earnings and the terms of work offered through app-based platforms.
During the period covered by the investigation, Walmart had more than 400 workers in Seattle and thousands of workers worldwide, according to information released with the settlement.
Danielle Alvarado, executive director of Fair Work Center/Working Washington, said the settlement highlights the importance of both compensation and transparency requirements for app-based workers.
“This settlement with one of the world’s largest multinational corporations underscores why app-based workers fought so hard to win transparency protections. As a result of worker organizing, Seattle’s ordinance requires apps to provide workers with all the pay they are owed and, just as crucially, the records to verify that pay is accurate. We are proud to live in a city that demonstrates its commitment to invest the public resources needed to enforce workers’ rights and hold corporations accountable,” said Alvarado.
Gig worker Bridgette Smallbeck-Poehler said she chose to come forward because she believed something was wrong with how workers were being compensated. She said the costs associated with gig work, including using personal vehicles and covering expenses, make proper compensation particularly important.
“Gig workers deserve to be treated fairly and paid for the work they do. We use our own vehicles, cover our own expenses, and dedicate our time to getting the job done, yet too often the compensation doesn’t reflect that reality. As a single mother, every dollar matters, and standing up for what is right is not always easy. I chose to speak up because I believed something was wrong, and the Office of Labor Standards listened. Their investigation showed that workers’ voices matter and that [companies] must be held accountable. I hope this outcome encourages other gig workers to know they are not powerless. When we stand up for ourselves, we can create meaningful change,” said Smallbeck-Poehler.
The settlement resolves the allegations identified by OLS and provides payments to the 413 workers affected by the investigation.
