(The Center Square) – App-based delivery network companies and business advocacy groups are calling for a change to a proposed worker deactivation law in Seattle as costs continue to increase in 2025.
The Seattle Office of Labor Standards is proposing new rules that would require delivery platforms to disclose information when a delivery worker is deactivated for egregious or dangerous misconduct. This includes sharing specific details of an incident with someone who has engaged in violence or assault.
From the beginning of this year through May 31, 2027, the Office of Labor Standards will investigate any instances where a network company did not provide notice, access to records, or if they did not follow required steps before and after deactivating an app-based worker.
Starting June 1, 2027, the office may commence investigations of whether a network company deactivated a worker for a permissible reason, if the rules are approved by city leadership.
A collection of Washington business advocacy groups and network companies are warning that draft rules from the Seattle Office of Labor Standards will make delivery services in the city even more expensive.
The list of companies and organizations publicly condemning the proposed laws include DoorDash, the Washington Alliance for Innovation and Independent Work, Washington Retail Association, the Seattle Latino Chamber of Commerce, and the Washington Technology Industry Association.
Opponents of the proposed laws are asking the Office of Labor Standards to make changes to the proposals in order to not only prevent increased costs for businesses and app users, as well as prevent breaches of privacy related to workers being deactivated.
“These new regulations will result in increased costs for both businesses and the Seattle families who rely on delivery services for food and other household necessities,” Seattle Latino Chamber of Commerce CEO Marcos Wanless said in a statement. “Our member businesses are already struggling under the weight of high costs from the city’s existing delivery laws and regulations – additional costs resulting from these new regulations will only exacerbate a decline in orders.”
The recommended changes to the Office of Labor Standards’ proposed rules include the elimination of a provision redefining a deactivation to include any significant change in offers made to workers; allowing delivery companies to withhold any records that could result in a victim being identified and retaliated against; and ensuring the required processes for companies to remove a worker are as flexible as possible to implement.
Seattle has implemented laws related to app-based delivery services that require a minimum wage for delivery workers and offer paid sick leave. Companies like DoorDash and Uber retaliated with $5 fees.
With increased costs for using these delivery apps, there have been less orders since the laws took effect in 2024. According to DoorDash, Seattle consumers placed 1.7 million fewer orders on the DoorDash marketplace in 2024.
The company estimates Seattle businesses have earned a collective $40 million less through the app than they otherwise would have last year.
The Center Square reached out to the Office of Labor Standards for comment, but did not receive a response at the time of publication.
