Seattle Municipal Code, Chapters 8.37 "App-Based Worker Minimum Payment" ; 8.39 "App-Based Workers Paid Sick and Safe Time" and 8.40 "App-Based Worker Deactivation Rights" as amended by Ordinance SMC 8.37, 2022; Ordinance No. 126878 and Ordinance No. 126878

8.37.020 Definitions: (...) 

"Application dispatch” means technology that allows customers to directly request dispatch of app-based workers for provision of services and/or allows app-based workers or network companies to accept offers to perform services for compensation and payments for services via the internet using interfaces, including but not limited to website, smartphone, and tablet applications (...) 

Section 1. The City Council (“Council”) finds and declares that: (...) 

F. Network companies typically manage large pools of app-based workers by relying on algorithmic management systems, which allow app-based workers to be “assigned, optimized, and evaluated through algorithms and tracked data.” 

G. While algorithmic management may bring certain benefits to network companies, these innovations also generate significant challenges for app-based workers, including information asymmetries and extreme power imbalances between workers and network companies. 

H. App-based workers often do not have the information they need to know about how they will be evaluated. Algorithms that dictate core aspects of app-based workers’ relationship with a network company can change unexpectedly, leading to arbitrary evaluations and unwarranted deactivations. 

I. App-based workers are subject to network company policies that unilaterally deactivate workers for a variety of reasons without consistent access to a fair process for such deactivations, nor do the workers have access to responsive network company personnel with the power to correct unwarranted deactivations by in-person meetings or telephone. 

J. App-based workers face potential deactivation for reasons including but not limited to: rejecting too many orders; being unavailable on certain days or times; cancelling offers with cause; being delayed in fulfilling orders; receiving low ratings from consumers; or algorithmic errors.(...)

(...) WHEREAS, the definitions of “employee” and “employer” in local, state, and federal laws are broad, but network companies rely on business models that treat app-based workers as “independent contractors,” thereby creating barriers for app-based workers to access employee protections such as minimum wage, unemployment benefits, workers’ compensation, and paid family and medical leave (...) WHEREAS, the City intends to retain the current definitions of worker classification under Seattle’s labour standards and does not intend to create a new classification of workers distinct from employees or independent contractors.(...)

8.37.240 Other legal requirements—Effect on other laws: (...) 

D. No provision of this Chapter 8.37 shall be construed as providing a determination about the legal classification of any individual as an employee or independent contractor. 

8.39.030 App-based worker coverage: 

A. For the purposes of this Chapter 8.39, covered app-based workers are limited to those who perform services in furtherance of an offer facilitated or presented by a covered network company, where those services are performed in whole or part in Seattle. 

B. Services performed "in Seattle" shall include a work-related stop in Seattle. 

C. App-based workers who are employees under Chapter 14.16 for covered network companies are not covered app-based workers under this Chapter 8.39. Network companies must provide such app-based workers with paid sick and paid safe time in accordance with their obligations in Chapter 14.16.

8.40.030 App-based worker coverage: 

A. For the purpose of this Chapter 8.40, except for Section 8.40.100, covered app-based workers are limited to those for whom: 1. During the previous 180 days, at least 25 percent of their completed offers, or offers cancelled with cause, involved performing services in Seattle for a covered network company; or 2. The app-based worker’s deactivation is related to an incident or incidents that occurred while performing services in Seattle for a covered network company. 

B. For the purpose of Section 8.40.100, an app-based worker is covered by Section 8.40.100 if the app-based worker performs services in Seattle facilitated or presented by a network company covered by this Chapter 8.40. 

C. An app-based worker who is a covered employee under Chapter 14.20 for a covered network company, or a covered employee under Chapter 14.20 for a customer of an online order, is not a covered app-based worker under this Chapter 8.40. 

8.37.080 Flexibility: (…) 

4. The app-based worker makes a good faith complaint regarding sexual harassment or discrimination that is alleged to have occurred during performance of the offer (…)

8.40.050 Deactivation requirements (…) 

B. Deactivation of an app-based worker will be considered unwarranted if the action is intended to or results in discrimination or a discriminatory act. (…)

8.37.180 Appeal period and failure to respond: 

A. An app-based worker or other person who claims an injury as a result of an alleged violation of this Chapter 8.37 may appeal the Determination of No Violation, pursuant to Director’s Rules. 

B. A respondent may appeal the Director’s Order, including all remedies issued pursuant to Section 8.37.170, by requesting a contested hearing before the Hearing Examiner in writing 13 within 15 days of service of the Director’s Order shall be final. If the last day of the appeal period so computed is a Saturday, Sunday, or federal or City holiday, the appeal period shall run until 5 p.m. on the next business day. 

8.40.060 Right to challenge deactivation: 

A. A network company shall not subject an app-based worker to unwarranted deactivation. 

B. An app-based worker shall have a right to challenge the worker’s deactivation through an internal deactivation challenge procedure established by the network company. 

1. A network company shall create an internal deactivation challenge procedure that shall be available to the app-based worker immediately upon notice of their deactivation and up to 90 days after the app-based worker’s receipt of notice. 

2. The internal deactivation challenge procedure must be available to the app- based worker in writing, in a format that is readily accessible to the app-based worker, and in English and any language that the network company knows or has reason to know is the primary language of the app-based worker. The written policy describing the deactivation challenge procedure shall be available to the app-based worker at least three years after deactivation. The Director may issue rules governing the form and content of the policy describing the deactivation challenge procedure, the manner of its distribution, and required languages for its translation. (...) 

8.39.180 Appeal period and failure to respond: 

A. An app-based worker or other person who claims an injury as a result of an alleged violation of this Chapter 8.39 may appeal the Determination of No Violation, pursuant to Director rules. 

B. A respondent may appeal the Director's Order, including all remedies issued pursuant to Section 8.39.170, by requesting a contested hearing before the Hearing Examiner in writing within 15 days of service of the Director's Order. If a respondent fails to appeal the Director's Order within 15 days of service, the Director's Order shall be final. If the last day of the appeal period so computed is a Saturday, Sunday, or federal or City holiday, the appeal period shall run until 5 p.m. on the next business day.

8.37.080 Flexibility: (...) 

B. A network company shall allow an app-based worker to be logged into the network company’s worker platform at any date, time of day, or for any amount of time, except in the following circumstances: 1. Certain instances of deactivation as defined in rules, or other applicable law. 2. Limitations on a maximum amount of consecutive work time to protect worker and public safety. (...) 

Section 1. The City Council (“Council”) finds and declares that: (...) 

C. This ordinance protects and promotes public health, safety, and welfare by establishing a compensation scheme for app-based workers with minimum pay requirements and related standards for transparency and flexibility. (...)

8.37.050 Minimum network company payment: 

A. For each offer resulting in engaged time or engaged miles, a network company shall compensate app-based workers, and/or ensure app-based workers receive, at least the equivalent of a minimum network company payment that is the greater of either: 

1. The minimum per-minute amount for engaged time under subsection 8.37.050.B.1 plus the minimum per-mile amount for engaged miles under subsection 8.37.050.B.2; or 

2. The minimum per-offer amount under subsection 8.37.050.B.4. 

B. Minimum network company payment calculation (1) 

1. Per-minute amount. For each minute of engaged time, a network company shall compensate app-based workers, and/or ensure that app-based workers receive, at least the equivalent of the total of the minimum wage equivalent rate multiplied by the associated cost factor multiplied by the associated time factor. In 2022, the per-minute amount is $0.38. On the effective date of this Chapter 8.37, and on January 1 of each year thereafter, the per-minute amount shall be increased to reflect any adjustment(s) to the minimum wage equivalent rate, associated cost factor, or associated time factor. The Agency shall determine the per-minute amount and file a schedule of such amount with the City Clerk."

8.37.060 Tip and incentive compensation: 

A. Tips 1. A network company shall pay to its app-based workers all tips and gratuities. 2. Tips paid to an app-based worker are in addition to, and may not count towards: a. The app-based worker’s minimum network company payment under Section 8.37.050; b. A guaranteed minimum amount of network company payment for an offer, as described in Section 8.37.070, regardless of whether the guaranteed minimum amount exceeds the minimum network company payment owed to the app-based worker; c. Any incentive presented to the app-based worker; or d. Any amount of compensation presented to the app-based worker in exchange for the performance of services. 

B. Incentives paid to an app-based worker are in addition to, and may not count towards, the app-based worker’s minimum network company payment under Section 8.37.050.

8.37.020 Definitions: 

For purposes of this Chapter 8.37: (...) “Associated cost factor” means the additional percentage of the minimum wage equivalent rate that reasonably compensates app-based workers for the non-mileage expense that are necessary to conduct app-based work, which include but are not limited to the following: Employer-side payroll taxes that app-based workers must pay; Cost of paid family and medical leave insurance; Cost of state-provided unemployment insurance; Cost of workers’ compensation insurance; Business taxes that app-based workers must pay; (…)

8.39.050 Accrual of paid sick and paid safe time: 

A. An app-based worker who accrued paid sick leave under Ordinance 126091 shall retain all accrued, unused paid sick and paid safe time and is entitled to use such paid sick and paid safe time as provided in this Chapter 8.39. 

B. App-based workers shall accrue at least one day of paid sick and paid safe time for every 30 days worked. 1. Network companies may, but are not required to, frontload paid sick and paid safe time to an app-based worker in advance of the accrual required by this subsection 8.39.050.B.a. Frontloaded paid sick and paid safe time shall meet requirements for accrual, use, and carry-over, and shall otherwise comply with the provisions of this Chapter 8.39. b. Network companies shall correct any discrepancies, between the frontloaded paid sick and paid safe time and the amount of paid sick and paid safe time required by this subsection 8.39.050.B, as soon as practicable and no later than 30 days after the network company identifies the discrepancy or after an app-based worker provides notice to the network company of the discrepancy. c. Network companies shall not request or require reimbursement from an app-based worker who uses frontloaded paid sick and paid safe time that exceeds the amount of paid sick and paid safe time the app-based worker would have accrued absent frontloading. 

C. Network companies shall allow app-based workers to carry over at least nine days of accrued, unused paid sick and paid safe time to the following year. 1. For the purposes of this subsection 8.39.050.C, "year" means calendar year, unless otherwise established by the network company in the written policy and procedure required by subsection 8.39.100.B to mean fiscal year, service year, or any other fixed consecutive 12-month period established and used in the ordinary course of the network company's business for the purpose of calculating compensation to app-based workers. 2. If the network company transitions from one type of year to another for the purpose of carrying-over accrued, unused paid sick and paid safe time, the network company shall ensure that the transition process maintains the accrual, use, carry-over, and other requirements of this Chapter 8.39. 3. If an app-based worker carries over unused paid sick and paid safe time to the following year, accrual of paid sick and paid safe time in the subsequent year shall be in addition to the hours accrued in the previous year and carried over. 4. Network companies may allow for a more generous carry over of accrued, unused paid sick and paid safe time to the following year. 

D. If a network company quits, sells out, exchanges, or disposes the network company's business, or the network company's business is otherwise acquired by a successor, an app-based worker shall retain all accrued, unused paid sick and paid safe time and is entitled to use such paid sick and paid safe time as provided in this Chapter 8.39 as an app-based worker for the successor network company. (...)

8.37.020 Definitions: (…) 

“Adverse action” means reducing compensation; garnishing tips or gratuities; temporarily or permanently denying or limiting access to work, incentives, or bonuses; offering less desirable work; terminating; deactivating; threatening; penalizing; retaliating; engaging in unfair immigration-related practices; filing a false report with a government agency; or otherwise discriminating against any person for any reason prohibited by Section 8.37.120. “Adverse action” for an app-based worker may involve any aspect of the app-based worker’s work, including compensation, work hours, volume, and frequency of offers made available, desirability and compensation rates of offers made available, responsibilities, or other material change in the terms and conditions of work or in the ability of an app-based worker to perform work. “Adverse action” also includes any action by the network company or a person acting on the network company’s behalf that would dissuade a reasonable person from exercising any right afforded by this Chapter 8.37. 

8.40.050 Deactivation requirements. 

A. A network company shall adopt the following measures prior to deactivating an app- based worker, except as provided in subsections 8.40.050.C and 8.40.050.D: 

1. Fair notice of deactivation policy. A network company must inform the app- based worker in writing of the network company’s deactivation policy, defining what constitutes a violation that may result in deactivation. The network company’s written deactivation policy must be specific enough for an app-based worker to understand what constitutes a violation and how to avoid violating the policy. The deactivation policy must be available to the app-based worker in English and any language that the network company knows or has reason to know is the primary language of the app-based worker. The deactivation policy must be accessible to the app-based worker at least three years after deactivation. The Director may issue rules governing the form and description of the deactivation policy, the manner of its distribution, and required languages for its translation. (...)

8.37.070 Network company transparency: (...) 

G. A network company shall routinely and affirmatively transmit to the Agency such records as required by rules issued by the Director. The Director shall have the authority to require such aggregated or disaggregated records deemed necessary, appropriate, or convenient to administer, evaluate, and enforce the provisions of this Chapter 8.37. The Director may issue rules requiring that aggregated records be produced as a distribution at defined percentiles. The Director may issue data production rules of general applicability as well as rules specific to on- demand companies. In issuing data production rules, the Director shall consider, among other factors, methods to provide workers with information to make informed choices about platforms on which they may seek work and to provide the public with information to assess the impact of network companies. 

1. Records for production may include, but are not limited to: a. Records regarding the availability of offers facilitated via the network company platform; b. Records regarding the amount of engaged time and engaged miles; c. The amount of time that app-based workers must spend working or engaged to wait for work without compensation to perform app-based work; d. Records regarding the number of app-based workers who logged onto the worker platform, logged on for the first time in the reporting period, or accepted an offer; e. Per-offer or aggregated app-based worker compensation, including but not limited to network company payments, bonuses, incentives, and tips earned from customers; and f. Any other records that the Director determines are material and necessary to effectuate the purposes of this Chapter 8.37. 

2. The Director shall issue rules governing the submission format, security, and privacy protocols relating to the submission of network company records, to the extent permitted by law. (...) 

8.39.070 Confidentiality and nondisclosure: 

A. Except as provided in subsection 8.39.070.B, a network company shall maintain the confidentiality of information provided by the app-based worker or others in support of an app-based worker's request for paid sick and paid safe time under this Section 8.39.070, including but not limited to health information of the app-based worker or the app-based worker's family member, the fact that the app-based worker or app-based worker's family member is a victim of domestic violence, sexual assault, or stalking, the fact that the app-based worker requested or obtained paid sick and paid safe time under this Chapter 8.39, and any written or oral statement, documentation, record, or corroborating evidence provided by the app-based worker. 

B. Information protected by subsection 8.39.070.A may be disclosed by network companies only if it is: 

1. Requested or consented to by the app-based worker; 

2. Ordered by a court or administrative agency; or 3. Otherwise required by applicable federal or state law.

8.37.080 Flexibility: (...) 

B. A network company shall allow an app-based worker to be logged into the network company’s worker platform at any date, time of day, or for any amount of time, except in the following circumstances: 

1. Certain instances of deactivation as defined in rules, or other applicable law. 

2. Limitations on a maximum amount of consecutive work time to protect worker and public safety. (...) 

Section 1. The City Council (“Council”) finds and declares that: (...) 

G.Transparent information on job opportunities, along with the flexibility to determine hours of availability and which offers to accept, reject, or cancel with cause, allows workers to make informed decisions on how and when to earn their income without fear of financial penalty or other adverse actions. (...)