SEATTLE – DoorDash has agreed to pay a total of $1.6 million to its workers following an investigation by the city of Seattle. The investigation found that DoorDash failed to implement Seattle’s required sick and safe time policy for gig workers. This policy was initially introduced during the COVID-19 pandemic and was later made permanent to strengthen labor rights for gig workers in the city.
The violations reported by DoorDash workers included:
- Lack of a System: DoorDash did not establish a system that allowed workers to request and use paid time off.
- Delayed Compensation: Some workers did not receive timely compensation for their use of sick and safe time.
- Monthly Notice: The company failed to provide workers with monthly notices of their sick and safe time balances.
In response to the investigation, DoorDash reached a settlement agreement. The terms of the settlement include:
- $1.1 Million for Sick and Safe Time Credits: This amount will be used to provide sick and safe time credits to over 26,000 DoorDash workers.
- $500,000 to 648 Workers: DoorDash will pay $500,000 to 648 workers who faced issues related to sick and safe time.
- Fines to the City: DoorDash will pay more than $8,500 in fines to the city of Seattle.
DoorDash acknowledged the settlement and stated that it has been actively working to meet the new requirements imposed by the sick and safe time policy. The company also emphasized that it is ensuring workers are properly informed about their accrued time and is proactively reaching out to provide them with more information.
This is the second time DoorDash has faced issues related to Seattle’s sick and safe time policy. In 2021, the same city office investigated claims that DoorDash failed to credit workers with days from a previous owner and failed to provide accurate notice of the average daily compensation rate, resulting in about $145,000 paid to almost 900 workers.
DoorDash, with over 6 million drivers globally (all independent contractors) who fulfilled 1.7 billion orders in 2022, remains a major player in the food delivery and gig economy sectors.