Postmates has agreed to pay nearly $1 million to its Seattle workers to resolve its allegations of violating the city’s policy regarding temporary workers’ sick pay.
The Seattle Office of Labor Standards (OLS) announced the agreement on Wednesday, stating that US$927,555.09 will be used to pay 1,646 workers’ wages, interest, liquidated damages and civil fines. The City of Seattle will pay a fine of $22,260.40.
“Over the years, our couriers have missed many of the benefits we need, and we should have received these benefits from the beginning,” Postmates driver Sean W. Gray said in a press release in Seattle.
Last year, OLS began investigating Postmates’ labor practices because they began handling complaints from drivers, saying that the food and grocery delivery service did not provide workers with paid sick leave, notice of the company’s paid sick leave policy, or notice of their balance remaining paid. sick leave.
The city’s Part-time Paid Sick Leave and Safe Time Regulations were passed as a temporary measure last year, allowing part-time workers to accumulate and collect paid sick or safe time during the COVID-19 emergency. The city council temporarily extended this measure.
“OLS is pleased to see that Postmates is willing to correct the problem of non-compliance with Seattle labor standards,” said Steven Marchese, director of OLS. “As more and more labor standards issues emerge in the gig industry, it is important that these large companies admit their mistakes and take the necessary measures to keep their workers complete. Gig protection is essential to support workers and keep Seattle’s gig economy thriving. important.”
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Uber, it already controls a portion of the restaurant takeaway market Uber Eats formally acquired Postmates in an all-stock transaction of US$2.65 billion in December last year. The deal follows a controversial California law that prohibits gig workers (such as workers delivering food) from the work benefits they receive in Seattle.
Gig-driven companies have campaigned heavily for the passage of the law, although some voters said that these gig-economy companies have used “sneaky” tactics to let voters go their own way.
“All of us need to pay attention,” Susan Hurley, executive director of Jobs Justice in Chicago, told Washington post then. “We see that companies don’t want to re-employ full-time employees. They want independent contractors, which is true throughout the economy.”
Generally, companies that hire temporary workers can save money without paying worker benefits.
