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News / Business

Amazon Logistics under investigation for alleged labor violations

By Lauren Rosenblatt, The Seattle Times
Published: October 6, 2024, 6:00am

Seattle’s Office of Labor Standards is investigating Amazon Logistics — the company’s vast network of delivery services — for alleged violations of labor laws, including the city’s ordinance requiring paid sick time for gig workers that went into effect this year.

The investigation appears focused on Amazon’s Flex drivers, who operate like gig workers and make deliveries for the company using their own vehicles and on their own schedule.

Amazon sent a letter to its Flex drivers last Friday to notify them of the investigation, according to a copy of the note shared with The Seattle Times.

A spokesperson for the Office of Labor Standards confirmed Tuesday it had recently opened an investigation, adding that it does so “when it has reason to believe that a specific violation occurred or is occurring under Seattle’s labor laws.”

It’s unclear what law, or laws, government officials believe Amazon may have violated. But the spokesperson for the Office of Labor Standards said it opened the investigation under new ordinances put in place to give gig workers more of the same protections that companies offer employees.

That includes the Paid Sick and Safe Time Ordinance, or PSST, which requires companies provide paid time off for app-based workers to take care of themselves and their families, including for doctor’s visits, school closures or other health and safety reasons.

Those protections were put in place during the COVID-19 pandemic and later codified into law. The ordinance went into effect in May 2023 for food delivery companies using app-based workers and expanded to include all app-based workers at companies with more than 250 workers in January.

In its note to workers, Amazon said “we remain confident we are in compliance with all laws and regulations, including Seattle PSST, and are committed to transparency and cooperation throughout the process.”

Amazon confirmed to The Times on Wednesday that the Office of Labor Standards is investigating Amazon Logistics to ensure compliance with paid sick and safe time accrual under the PSST ordinance.

Amazon Logistics isn’t the only company feeling the impact of the ordinance.

In August 2023, the Office of Labor Standards found DoorDash violated the ordinance by failing to establish a system for workers to request and use paid time off, provide timely compensation to gig workers for use of that time and give workers monthly notice of their PSST balances. DoorDash paid $1.6 million as a result of the investigation.

In March, Instacart agreed to pay nearly $750,000 to settle allegations it failed to comply with the same ordinance. The Office of Labor Standards accused Instacart of failing to allow drivers who had been deactivated from the platform to use their accrued time off and failing to provide accurate compensation rates when telling workers how much time they had accrued.

The Office of Labor Standards says on its website that most investigations are resolved in a settlement agreement.

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