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DoorDash and Postmates are paying more than $350,000 in restitution to drivers over the COVID-19 pandemic.
The repayment comes after a voluntary self-audit following the passing of a new law in Seattle designed to offer gig workers “hazard pay” during the novel coronavirus outbreak. Here’s everything you need to know:
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The city’s new law seems to be working, Eater Seattle points out, because the food delivery companies shelled out the significant sum following its passing in order to stay in compliance with the mandate. That’s why it was passed!
The Seattle Office of Labor Standards (OLS) announced the the “premium pay” bill in June, and the delivery companies announced their payout last week.
DoorDash paid $111,435 to 2,998 workers and Postmates paid $250,515 to 2,975 workers. This is huge!
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The purpose of the bill was to help gig workers earn extra money. In other full-time roles, this is known as hazard pay, but in many gig workers across the U.S. aren't eligible for such pay, despite the fact they are also risking their health and wellbeing by working through a pandemic.
The pay bump provides an extra $2.50 per order in addition to their usual pay. The bill required companies to give the workers the hazard pay until the end of the "civil emergency," and the fine for not paying is $546.07 per “aggrieved party."
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Luckily, DoorDash and Postmates self-monitored and their payment is not a penalty or fine--rather an agreement made between the government office and the companies.
“After receiving calls from gig workers, OLS contacted the companies, informing them that if the companies resolved issues regarding premium pay and paid workers back pay and interest by a certain date, OLS would forego a formal investigation,” OLS communications manager Cynthia Santana told Eater Seattle.
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“Both companies complied, conducted an internal audit, which identified various problems, and promptly paid the workers back pay and interest. We received proof of compliance from both hiring entities.”
