Summary:

Uber Eats has agreed to pay a $15m settlement to Seattle's Office of Labor Standards following allegations of underpaying over 16,000 delivery workers. The settlement includes back pay, interest, damages, and penalties, and is the largest in the history of the Office of Labor Standards. The case involved Uber Eats' "Boost" promotion, which allegedly did not disclose that the earnings multiplier applied only to a portion of the fare. Uber Eats also failed to provide legally required notices of rights under the Independent Contractor Protections Ordinance. The company denied all allegations but agreed to settle the claims.

The Seattle Office of Labor Standards (OLS) has finalized a $15 million settlement with Portier, LLC, doing business as Uber Eats, following allegations that the company underpaid more than 16,000 delivery workers in violation of city labor laws.

According to OLS, the settlement is the largest in the history of the Office of Labor Standards and brings closure to two investigations into potential violations of Seattle’s Independent Contractor Protections (ICP) and App-Based Worker Minimum Payment (ABWMP) Ordinances. Under the agreement, Uber Eats will pay $14,991,841.49 in back pay, interest, damages, and penalties to impacted workers, with payments scheduled to be distributed by Labor Day, September 1, 2025. The company will also pay $33,680.26 in fines to the City of Seattle.

“This historic $15 million settlement is a major win for workers and a strong reminder that in Seattle, we hold large companies accountable when they sidestep their responsibilities and shortchange workers,” said Seattle Mayor Bruce Harrell. “We are proud of our nation-leading policies that protect and uplift app-based workers. Fair pay, transparency, and strong worker protections are essential for building an equitable, affordable Seattle for everyone.”

“This sets a new benchmark and represents a significant milestone for the protection of worker rights in Seattle in the rapidly growing industry of app-based work,” said Office of Labor Standards Director Steven Marchese. “It’s only fair that companies inform workers of their pay before work begins and honor those commitments.”

Independent Contractor Protections Investigation

OLS opened its first investigation into Uber Eats on November 6, 2023, under the ICP Ordinance, which took effect on September 1, 2022. The ordinance requires companies to disclose how much a job pays and how that pay is calculated both before and after work is completed. It also gives workers the ability to enforce pay commitments made by companies.

A key issue in the case involved Uber Eats’ “Boost” promotion—a feature that offered earnings multipliers during high-demand periods. OLS claims that Uber Eats did not disclose that the Boost multiplier applied only to a portion of the fare, and that the pre-work offer cards already included contributions from the Boost promotion.

“The numbers weren’t making sense. Instead of accepting them and moving on, I tried to make the math work. When it didn’t, I took action,” said Lukas Kucinski, the worker who filed the initial complaint. “I hope the outcome of this settlement can serve as a reminder that there are institutions whose reason for being is to protect the public.”

OLS also claims that some workers were paid less than the amounts shown in pre-work offers and that Uber Eats failed to provide legally required notices of rights under the ordinance.

Uber Eats denied all allegations but agreed to settle the ICP claims for $13,559,434.41. Of that total, more than $13 million was related to issues involving the Boost promotion. The company discontinued Boost in Seattle on August 28, 2023, shortly after OLS contacted them.

App-Based Worker Minimum Payment Investigation

The second investigation, launched November 15, 2024, focused on alleged violations of the ABWMP Ordinance, which ensures minimum pay for app-based workers based on time and distance—even for jobs canceled with cause.

Workers reported not being paid for canceled orders. After being contacted by OLS, Uber Eats issued $167,313.27 in payment adjustments to 5,920 workers. OLS also claims that the company failed to issue electronic receipts and accurate weekly summaries for these canceled offers, as required by law.

Uber Eats denied liability but agreed to resolve the ABWMP claims for $1,466,087.34. As part of the settlement, the company will create a written “Cancellation with Cause” policy and notify workers monthly about how to access it.

“I was glad to have played my part in documenting and reporting the cancelled order complaint,” said David Lilley, one of the workers who came forward. “It pays for workers to learn their rights and report problems to someone who can do something about them.”

“When workers don’t get paid what they were promised for delivering food by Uber Eats, it means they can’t put food on their own tables,” said King County Councilmember Teresa Mosqueda. “I applaud OLS for helping make sure working people get what they are owed, and that no company, no matter how big or small, can exploit people with impunity.”