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Amazon agreed to pay more than $3.7million to resolve a case brought by the Seattle Office of Labor Standards, closing an investigation into claims that the company’s Flex program breached worker protection laws established during the COVID pandemic.
Steven Marchese, who leads the office, called it the second-largest settlement in the agency’s history.
The inquiry centered on temporary city ordinances adopted during the pandemic to cover gig and app-based workers. City officials said Flex drivers deliver packages throughout Seattle using their own vehicles, and the rules were designed to provide additional income and paid leave for those who continued performing essential services.
Seattle probe examines worker protections
Nearly 11,000 drivers are expected to start receiving payments around Jan. 1. The Office of Labor Standards alleged that Amazon provided paid sick and safe time and premium pay only when drivers delivered food and grocery orders. The city contended that the benefits were not extended to those completing package deliveries for Amazon warehouses, which it said violated the temporary ordinances.
Amazon denied wrongdoing and said it disagreed with the city’s position.
“The Puget Sound region is our home, and we’re proud to serve customers here while supporting the community through good job opportunities, support for local small businesses and organizations, and hundreds of millions in local investments,” an Amazon spokesperson said, adding that the company was “pleased to put it behind us and remain focused on continuing to improve the experience for our customers and the drivers who deliver to them.”
Rules adopted during COVID shaped the case
Some measures examined in the investigation were no longer active. The Gig Worker Premium Pay ordinance required companies to add at least $2.50 to each order but expired when Mayor Bruce Harrell ended the pandemic emergency order in October 2022. Other rules, rewritten and made permanent in 2023, required certain businesses to provide paid sick and safe time that could be used for “qualifying circumstances.” Workers earn one day of leave for every 30 days worked within Seattle.
Mayor Harrell emphasized the contribution of gig workers during the pandemic, saying they played a vital part in delivering services.
Wellington Alvarado, executive director of Working Washington, said the outcome reflected the value of worker advocacy.
“This settlement proves the power of organizing to win fair pay and dignified workplaces, and the importance of enforcing those wins, especially in the multi-billion-dollar food delivery gig economy that has built its wealth on the underpayment of its workforce,” Alvarado said.
