Uber Eats has agreed to a $15 million settlement with the city of Seattle over alleged violations of local labor laws protecting app-based workers. This landmark agreement, announced on August 26, 2025, marks the largest payout in the history of Seattle's Office of Labor Standards (OLS). The settlement impacts more than 16,000 Uber Eats delivery workers in the city and aims to address concerns over pay transparency and minimum wage requirements.

The OLS investigations into Uber Eats' practices stemmed from complaints filed by gig workers. These complaints triggered two separate investigations, one initiated in November 2023 and the other in November 2024. The first investigation focused on alleged violations of Seattle's Independent Contractor Protections (ICP) Ordinance, which took effect in September 2022. This ordinance mandates that companies clearly disclose pay rates and terms to workers before they begin work and that they honor those commitments. The OLS alleged that Uber Eats misled workers regarding its "Boost" promotion, which offered additional earnings for deliveries during busy times and in specific locations. Specifically, the city claimed that Uber Eats did not adequately disclose that the "Boost" multiplier only applied to a portion of the fare and that the multiplier's contribution was already included in the upfront payment amount advertised to workers. Uber Eats ended the "Boost" program in Seattle in August 2023, after the OLS began its inquiries. Uber Eats will pay $13.5 million to settle claims related to the ICP ordinance.

The second investigation centered on potential violations of Seattle's App-Based Worker Minimum Payment (ABWMP) Ordinance, enacted in January 2024. This ordinance ensures that gig workers receive a minimum payment based on the time worked and distance traveled, even when a job is canceled. The OLS alleged that Uber Eats failed to pay or underpaid workers for cancelled jobs and did not provide all required information on electronic receipts and weekly reports. Uber Eats will pay $1.5 million to settle issues related to the ABWMP ordinance.

Under the terms of the settlement, Uber Eats will pay $14,991,841.49 in back pay, interest, damages, and penalties to 16,120 affected workers. The company will also pay $33,680.26 in fines to the city of Seattle. Payments are scheduled to be distributed to workers by Labor Day of next week.

Despite agreeing to the settlement, Uber Eats denies any allegations of wrongdoing in both cases. However, the company has agreed to implement a written cancellation policy and distribute it monthly to workers.

Seattle Mayor Bruce Harrell hailed the settlement as "a major win for workers" and a reminder that the city holds large companies accountable when they "shortchange workers". Steven Marchese, director of the Office of Labor Standards, stated that the settlement "sets a new benchmark" for worker protection in Seattle's app-based work industry. He also emphasized the importance of workers knowing their rights and available recourse through the OLS.

This settlement follows previous labor settlements between the City of Seattle and gig economy companies, including a $3.4 million settlement with Uber in 2021 and a $1.6 million settlement with DoorDash in 2023. These actions reflect Seattle's proactive approach to establishing worker protections in the rapidly evolving gig economy.