Uber Eats Agrees to Pay Nearly $4.4M to Resolve Wage Violations

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 From Workers After Previous Settlement

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. For 2026, network companies like Uber Eats must pay at least 47 cents per minute plus 80 cents per mile, or $5.34 per offer, whichever is greater.

Second Investigation Finds Additional Wage Violations

“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. 

OLS alleged Uber Eats failed to consistently provide minimum payments for canceled orders when required, including when workers went to a pick-up location and reported to Uber Eats that an order needed to be canceled for cause. OLS also claimed that Uber Eats sometimes didn’t provide workers with the required minimum payments for the time they worked.

On Aug. 18, 2026, OLS announced that Uber Eats agreed to settle these claims. In total, the company will pay:

• More than $4.38 million in back pay, interest and damages to 14,421 workers, and
• Nearly $6,000 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