Instacart has settled with the Seattle Office of Labor Standards for alleged violations of the city’s Gig Worker Paid Sick and Safe Time Ordinance. The grocery delivery company will pay $730,041.15 to 5,567 affected workers to remedy its failure to comply with the ordinance between July 13, 2020, and March 6, 2024. Instacart will also pay $18,685.50 in fines to the City of Seattle as part of the settlement.
The protections for gig workers of food delivery and transportation network companies first went into effect during the start of the COVID-19 pandemic. In March 2023, the Seattle City Council made the rules permanent, making Seattle the first U.S. city to require companies to provide paid sick leave for food-delivery and other on-demand, app-based gig economy workers. This new regulation aims to ensure that all workers, including gig and app-based workers, who are often immigrants and people of color, have access to protections against subminimum pay and are able to take Paid Sick and Safe Time (PSST).
Steven Marchese, the director of the Office of Labor Standards, emphasized the importance of providing these protections to all workers, regardless of their work environment. He stated that all workers, including those in the gig economy, deserve access to PSST and protection against subminimum pay. The settlement with Instacart is seen as a step towards addressing these issues and ensuring that gig workers are treated fairly and given the necessary support and benefits.
The settlement with Instacart highlights the ongoing challenges faced by gig workers, especially during times of crisis such as the COVID-19 pandemic. Many gig workers perform essential services, such as food delivery, and are at risk of exposure to the virus. Providing them with paid sick leave and other protections is crucial for their well-being and for public health. The settlement serves as a reminder to gig companies to comply with labor laws and ensure that their workers are fairly compensated and protected.
The settlement also serves as a signal to other gig companies that they must comply with labor laws and provide necessary protections to their workers. In an industry where gig workers often face precarious working conditions and low pay, ensuring that they have access to benefits such as paid sick leave is essential. The settlement with Instacart demonstrates that companies can be held accountable for violating labor laws and that workers’ rights must be protected, regardless of their employment status.
Overall, the settlement between Instacart and the Seattle Office of Labor Standards highlights the importance of ensuring that gig workers have access to necessary protections, such as paid sick leave. This settlement serves as a step towards addressing the challenges faced by gig workers and ensuring that they are treated fairly and given the support they need. Moving forward, it is essential for gig companies to comply with labor laws and prioritize the well-being of their workers to create a more equitable and just work environment for all.
