Additional Protections for Seattle App-Based Workers Take Effect On January 1, 2025

Seattle continues to expand protections for app-based workers (sometimes referred to as “gig workers”) working within the City of Seattle with its new App-Based Worker Deactivation Rights Ordinance.

Overview of the New Ordinance

Effective January 1, 2025, the City of Seattle’s “Ordinance relating to app-based worker labor standards; establishing labor standards on deactivation protections for app-based workers working in Seattle” (Ordinance 126878) (the “Ordinance”) takes effect.

The Ordinance requires network company employers of 250 or more app-based workers worldwide to follow specified procedures and provide workers 14 days’ notice prior to deactivating an app-based worker from the company’s worker platform. “Deactivation” is defined to mean “the blocking of an app-based worker’s access to the worker platform, changing an app-based worker’s status from eligible to accept offers to perform services to ineligible, or other material restriction in access to the worker platform that is effected by a network company.”

Who Must Comply with the Ordinance?

The Ordinance applies to “a network company” or an organization or entity that uses an online-enabled platform to connect its customers with app-based workers. This platform must present offers to app-based workers or promote the provision of services for pay by app-based workers. A “network company” also includes “marketplace network companies,” which are network companies that focus on facilitating pre-scheduled offers in which:

(a) the platform enables the customer and app-based worker to exchange information about the scope and details of services to be performed, prior to the customer placing the online order for those services or the app-based worker accepting the offer;

(b) the app-based worker sets their own rates; and

Key Deactivation Protections for App-Based Workers

The Ordinance requires network companies to provide app-based workers with: i) fair notice of a reasonable deactivation policy; ii) fair and objective investigation prior to deactivation; iii) confirmation that the app-based worker violated the network company’s policy; and iv) consistent application of the policy. Deactivation must be “reasonably related” to the app-based worker’s offense and must account for mitigating circumstances.

In circumstances where deactivation is reasonably related to the app-based worker’s offense, the network company must provide its app-based worker with notice of deactivation 14 days prior to the deactivation and upon the actual date of deactivation. This notice must provide the app-based worker with a written statement, which must include the following:

The reasons for deactivation, including the network company’s policy that was violated;
The effective date of deactivation;
Any and all records relied upon to substantiate deactivation;
A description of the steps an app-based worker can take to remedy deactivation;
The app-based worker’s right to challenge deactivation;
The network company’s process for challenging a deactivation and the available information for an app-based worker to initiate such a challenge

Other Seattle App-Based Worker Ordinances

This protection supplements two other Seattle ordinances currently in place providing rights and protections for app-based workers.

Rights to Minimum Pay and Upfront Disclosures

Seattle’s App-Based Worker Minimum Payment Ordinance (SMC 8.37), which went into effect on January 13, 2024, provides covered app-based workers with the following:

the right to minimum pay based on time worked and miles travelled per offer;
the right to upfront disclosures of offer information and the right to receipt and payment records; and
the right to access the network platform with no limitations, with exceptions for health and safety limitations), the right to limit availability or to refuse offers without penalty, and the right to cancel an offer with cause.

Under this law, network companies must pay their app-based workers the greater of

minimum per-minute amount of $0.44 and minimum per-mile amount of $0.74 or
minimum per-offer amount of $5

Paid Sick and Safe Time Ordinance

Seattle’s App-Based Worker Paid Sick and Safe Time Ordinance (SMC 8.39), which went into effect for food delivery network company workers on May 1, 2023, and for all other app-based workers on January 13, 2024, provides covered workers with paid sick and safe time based on the worker’s “average daily compensation” for each day worked.

App-based workers accrue one day of paid sick and safe time for every 30 days with at least one work-related stop in Seattle. For example, this includes shopping at a store in Seattle or making a delivery in Seattle.

Under the ordinance, app-based workers who work in Seattle at least once in a 90 day calendar period may use paid sick and safe time in 24-hour increments for any reasons covered, including:

to care for themselves or a family member for a physical or mental health condition
to care for themselves, a family member, or a household member for reasons related to domestic violence, sexual assault, or stalking
when their family member’s school or place of care has been closed

Ensuring Compliance and Recommendations

If your network company employs app-based workers who work in some capacity in the City of Seattle, you will be responsible for complying with this Ordinance as of January 1. Penalties for failure to comply with Seattle’s App-Based Worker Ordinances may include significant fines, including civil fines paid to the City of Seattle and compensation to the affected workers. Seyfarth’s Seattle office can help ensure your compliance with the Ordinance and answer any related questions you may have.