Amazon will pay $3.7 million to settle labor claims in Seattle over alleged violations of labor law

Amazon will pay $3.7 million to settle labor claims in Seattle over alleged violations of labor law

By Kurt Schlosser | Published: 2025-12-03 16:00:00 | Source: GeekWire

Amazon agreed to pay more than $3.7 million to settle claims with the city of Seattle Office of Labor Standards (OLS) over allegations that it violated laws protecting workers in app-based jobs during the pandemic.

Amazon only provided premium wages and paid sick and safe time (PSST) to workers when they made deliveries for Amazon Flex’s food or grocery lines of business — but not to workers who made package deliveries from Amazon warehouses, OLS said in a press release on Wednesday.

Amazon Flex It uses independent contractors who drive their own vehicles to deliver items for Amazon’s lines of business.

Amazon has denied the allegations, but will pay $3,777,924.10, consisting of settlement payments and credits to 10,968 affected workers and $20,000 in fines to the city of Seattle.

The alleged violations cover three city ordinances: Gig Worker Premium Pay, Gig Worker Sick and Safe Time, and App-Based Worker Sick and Safe Time.

The OLS process alleged that in violation of The workers were upset about the wage premium Under the law, between August 27, 2021 and October 31, 2022, Amazon failed to provide premium wages to Amazon Flex gig workers for deliveries with pick-up and/or delivery in Seattle that were not intended for its food/grocery business lines.

OLS also alleged other violations of Gig worker paid sick and safe time and The app-based worker pays sick and safe time Ordinances between January 31, 2021 and January 12, 2024. The agency said Amazon Flex failed to create an accessible system for gig workers to request and use PSST for non-delivery workers for food/grocery lines of business, and failed to provide proper monthly PSST notification for non-delivery food/grocery workers.

“Independent workers have served on the front lines throughout the pandemic, providing vital services like grocery and food deliveries to our neighbors and vulnerable seniors,” Mayor Bruce Harrell said in a statement. “These workers remain an important part of our workforce today and deserve fair pay and protection.”

The Gig Worker Premium Pay and Gig Worker PSST ordinances were temporary ordinances enacted during the pandemic to allow gig workers to access overtime pay and sick leave benefits. With the lifting of the mayor’s emergency order on October 31, 2022, the two ordinances are no longer in effect.

The settlement with Amazon Flex is the second-largest in OLS history, according to OLS Director Stephen Marchese.

In August, Uber Eats agreed to pay $15 million to more than 16,000 delivery workers in Seattle over allegations that the tech giant violated laws regulating how workers are paid. The majority of that settlement was associated with the city Independent Contractor Protection (ICP) Act.which was issued in 2021 and aims to ensure wage transparency.

Affected Amazon Flex workers can expect settlement payments starting around January 1, according to OLS.

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