Uber Eats Faces Another $4.4M in Wage Liability Exposure

Federal and state laws tend to dominate compliance discussions, but local ordinances carry serious financial consequences, too. Case in point:

The City of Seattle’s Office of Labor Standards (OLS) recently announced its second-largest enforcement action ever – a nearly $4.4 million agreement with Uber Eats to resolve alleged wage violations affecting 14,421 gig workers.

Ongoing Complaints Lead to New Financial Exposure

Last summer, OLS announced a historic $15 million settlement with Uber Eats to resolve alleged violations of the App-Based Worker Minimum Payment Ordinance.

The ordinance guarantees gig workers a standard minimum payment based on work time and travel distance. In 2026, the minimum is 47 cents per minute plus 80 cents per mile, or $5.34 per offer, whichever is greater.

Second Investigation Finds Additional Wage Liability 

“After the settlement, workers continued to contact our office alleging the company was still violating the ordinance. Upon further investigation, OLS found additional violations,” said OLS Director Steven Marchese. 

On Aug. 18, 2026, OLS announced that Uber Eats agreed to settle these claims. The agreement calls for the company to pay:

• $4,386,682.28 in back pay, interest and damages to 14,421 workers, and
• $5,982.90 in fines to the City of Seattle.

Bottom line: Local wage laws stack on top of federal and state requirements. Periodic checks – say, quarterly or when onboarding new locations – of city-level ordinances may help avoid significant liability – and the operational disruption that comes with it. 

More info: OLS Press Release