Seattle’s App-Based Worker Deactivation Ordinance To Take Effect January 2025

Seattle’s App-Based Worker Deactivation Ordinance To Take Effect January 2025

By Kiara Doyal, The Seattle Medium

Last week, the Seattle Office of Labor Standards (OLS) announced that its new App-Based Worker Deactivation Rights Ordinance will take effect on January 1, 2025. The new law protects app-based workers from being unfairly deactivated—temporarily or permanently blocked—from accessing the platforms they depend on for income.

“This is a law that covers certain app-based workers. The purpose of it is really to provide specific rights and protections for those workers when they are deactivated by the app-based platforms,” said OLS Director Steven Marchese. “Deactivation is essentially a thing that the app companies do to prevent the worker from getting access to opportunities on that app, putting them out of business on that app, which means it’s a pretty direct economic consequence to those workers.”

Originally passed by the Seattle City Council in August 2023 and signed by the mayor, the ordinance responds to app-based workers’ longstanding concerns about sudden deactivations without explanation. Many workers reported being unable to access their accounts without knowing why they had been deactivated or receiving any warning.

“This ordinance really gives the workers the right to know why this is happening when it happens. It allows them to have a process of both finding out information and also contesting that decision when it happens and providing both protections in terms of how they can do that,” said Marchese.

The ordinance, which is set to go into effect, aims to support app-based workers who are independent contractors rather than employees of the app companies. It seeks to provide these workers with greater transparency and security, ensuring they are informed about how changes may impact their livelihood and understand the reasons behind those changes.

“It’s really about helping workers understand and get the information they need to know why their livelihood is being impacted,” Marchese said. “In a typical employer-employee situation, if your boss fires or suspends you, you want to know how and why, what’s the basis for it, and if you can contest or explain the situation. These are basic protections that people intuitively understand.”

“OLS is committed to providing outreach and education to both workers and network companies to ensure everyone is informed of their rights and responsibilities under this new law,” Marchese concluded.

Between January 1, 2025, and May 31, 2027, OLS will have limited enforcement authority. During this time, OLS can investigate issues such as whether a network company provided:

• A notice of rights;

• A deactivation policy;

• Evidence substantiating the deactivation;

• A procedure where the worker can challenge the deactivation;

• Followed the required steps before and after deactivating an app-based worker.

While OLS is not permitted to investigate whether a network company deactivated a worker for a permissible reason until June 1, 2027, they may investigate issues of retaliation at any time.

In Seattle, income remains a significant concern for many residents. On platforms like UberEats and DoorDash, delivery costs are high due to added fees, which can impact both gig workers’ and small business owners’ incomes. However, Marchese clarified that the Seattle Mandate Delivery Fees are not directly imposed by local regulations. He emphasized that the ordinance regarding worker deactivation and previous laws on delivery fees are unrelated.

“One of the confusions surrounding fees and costs for delivery apps is that the minimum payment ordinance does not mandate fees; that decision is made by the app companies,” Marchese said. “It’s important to be clear about where the fees come from. The ordinance on minimum payments does not require any app company to impose a fee. It sets a pay standard, defines how that pay is calculated, and establishes the right of a worker to expect compensation based on that standard.”

“Now app companies have chosen independently to make these decisions. This deactivation ordinance is different because that is about how workers get information and contest when they are barred from being on the app. So, there isn’t a minimum payment aspect to this. It’s a different type of thing,” added Marchese.

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