Gig Worker Premium Pay Ordinance

COVID-19 Gig Worker Premium Pay Ordinance Fact Sheet

Update: The temporary Gig Worker Premium Pay Ordinance required Food Delivery Network Companies (FDNCs) to pay gig workers certain amounts of premium pay for online orders that have a pick-up or drop-off point in Seattle. The Gig Worker Premium Pay Ordinance went into effect on June 26, 2020. Certain requirements of this law are suspended effective November 1, 2022 . These changes align with Mayor Bruce Harrell’s announcement to end the Civil Emergency Proclamation after October 31, 2022 and with Washington State’s and Governor Inslee’s decision to end the statewide state of emergency.

 

As of November 1, 2022, the following requirements apply:

  • Premium Pay: the law no longer requires covered hiring entities to pay additional premium pay for orders.
  • Notice of rights: covered hiring entities must provide a Notice of Rights for a period of three years through October 31, 2025.
  • Enforcement: Gig workers with complaints that their hiring entity failed to pay premium pay between June 26, 2020 and October 31, 2022 can still contact the Office of Labor Standards (OLS) with their complaints for three years (through October 31, 2025). Please do not delay contacting the office to ensure you may exercise your rights under this ordinance. You can contact OLS by calling (206) 256-5297 or contact us online by filling out this form (click here).

About this law: The temporary Gig Worker Premium Pay Ordinance required Food Delivery Network Companies (FDNCs) to pay gig workers certain amounts of premium pay for online orders that have a pick-up or drop-off point in Seattle between June 26, 2020 and October 31, 2022.

 

Premium Pay

The law required Food Delivery Network Companies (FDNCs) to pay gig workers amounts of premium pay for online orders that had a pick-up or drop-off point in Seattle. FDNCs include companies that offer prearranged food, beverage, or grocery delivery services for compensation using an online or cellphone application to connect customers with delivery workers ("gig workers"). To be covered by this law, the company must hire at least 250 or more gig workers worldwide.

A gig worker must receive at least $2.50 of premium pay per order, where there is either a pick-up or drop-off in Seattle. A worker is also owed the following additional amounts if applicable to that same online order:

  • $1.25 for each additional pick-up point in Seattle
  • $1.25 for each additional drop-off point in Seattle

Food Delivery Network Companies must: 

  • Pay premium pay at the same time compensation is provided for the rest of the order
  • Identify which orders qualified for premium pay
  • Separately itemize premium pay

Consumer & Other Protections

Companies are prohibited from taking these actions if they are taken as a result of this law going into effect: 

  • Reducing or modifying its service areas in Seattle 
  • Reducing a worker's compensation
  • Limiting a worker's earning capacity
  • Adding customer charges to grocery orders 

Retaliation

Hiring entities are prohibited from retaliating against a gig worker for exercising rights granted by this ordinance.

Notice of Rights

The company must provide each gig worker with a written notice of rights that inform the worker that they have a right to:

  • premium pay as guaranteed by this law
  • protection from retaliation 
  • file a complaint with the Office of Labor Standards or file a civil action (lawsuit)  

The notice must be provided electronically via smartphone application or online web portal and in English and the primary language of the gig worker.

Record Keeping

The company must keep records that show compliance with the law for three years.  

Translated Fact Sheets

COVID-19 Gig Worker Ordinance Premium Pay Fact Sheets are available in Amharic, Simplified Chinese, Traditional Chinese, French,  Hindi, Oromo, Punjabi, Somali, Spanish and Tigrigna on the OLS Languages webpage. Recorded versions of the translations provided by the Department of Neighborhood Community Liaisons available on the OLS YouTube channel here.