Amazon has agreed to pay more than $3.7 million to settle claims with the City of Seattle’s Office of Labor Standards (OLS) over allegations that it violated ordinances protecting gig and app-based workers during the pandemic.

OLS said in a news release Wednesday that Amazon only provided premium pay and paid sick and safe time (PSST) to workers when they performed deliveries for Amazon Flex’s food or grocery business lines — but not to workers who performed package deliveries from Amazon’s warehouses.

Amazon Flex uses independent contractors that drive their own vehicles to deliver items for Amazon business lines.

Amazon denied the allegations, but will pay $3,777,924.10, consisting of settlement payments and credits to 10,968 affected workers and $20,000 in fines to the City of Seattle.

The alleged violations cover three city ordinances: Gig Worker Premium Pay, Gig Worker Paid Sick and Safe Time, and App-Based Worker Paid Sick and Safe Time.

OLS alleged that in violation of the Gig Worker Premium Pay ordinance, between Aug. 27, 2021, and Oct. 31, 2022, Amazon failed to provide premium pay to Amazon Flex gig workers for deliveries with a pick-up and/or drop-off in Seattle that were not for its food/grocery business lines.

OLS further alleged violations of the Gig Worker Paid Sick and Safe Time and the App-Based Worker Paid Sick and Safe Time ordinances between Jan. 31, 2021, and Jan. 12, 2024. The agency said Amazon Flex failed to establish an accessible system for gig workers to request and use PSST for workers that were not delivering for its food/grocery business lines, and it failed to provide correct monthly PSST notification to workers that were not delivering food/grocery.

“Gig workers served on the frontlines throughout the pandemic, providing critical services like grocery and food delivery to our vulnerable neighbors and elders,” Mayor Bruce Harrell said in a statement. “These workers remain a valued part of our workforce today and deserve fair pay and protections.”

The Gig Worker Premium Pay and Gig Worker PSST ordinances were temporary ordinances enacted during the pandemic to allow gig workers access to extra pay and sick leave benefits. With the lifting of the mayor’s emergency order on Oct. 31, 2022, the two ordinances are no longer in effect.

The settlement with Amazon Flex is the second largest in OLS history, according to OLS Director Steven Marchese.

In August, Uber Eats agreed to pay $15 million to more than 16,000 delivery workers in Seattle over allegations that the tech giant violated laws regulating how workers are paid. A majority of that settlement was related to the city’s Independent Contractor Protections (ICP) Ordinance, which passed in 2021 and aims to ensure pay transparency. 

Affected Amazon Flex workers can expect settlement payments starting around Jan. 1, according to OLS.

Update: Amazon provided the following statement to GeekWire on Wednesday:

“The Puget Sound region is our home, and we’re proud to serve customers here while supporting the community through good job opportunities, support for local small businesses and organizations, and hundreds of millions in local investments. We’ve always complied with Seattle laws relating to providing paid sick and safe time to delivery partners — including when the City Council enacted emergency measures during the pandemic for food delivery app-based workers, and following the 2024 expansion of the rule to include all app-based workers. While we strongly disagree with OLS on the facts of this matter, we’re pleased to put it behind us and remain focused on continuing to improve the experience for our customers and the drivers who deliver to them.”

The City of Seattle is interviewing candidates for a City AI Officer position to lead how artificial intelligence is utilized across departments and offices.

The new job is in line with the city’s recent release of a “responsible AI plan,” which provides guidelines for Seattle’s use of artificial intelligence and its support of the AI tech sector as an economic driver.

The CAIO will report to Rob Lloyd, the city’s chief technology officer, who said the job posting attracted 3,000 visits in the first week it was live. From roughly 40 highly qualified applicants, nine are being invited to interview, with backgrounds ranging from the private sector, federal government and academia.

Lloyd, who started as CTO last year, said the “very competitive” applicant pool also includes a few ex-Microsoft employees. A hire should be made by next week.

“We created the city AI plan [because] there’s lots of things that happen with AI for an organization to be effective at it,” Lloyd told GeekWire. “We defined a couple domains of activity that we have to be successful at.”

The CAIO will manage those domains, including:

• Technical excellence and orchestration: The city’s AI plan ensures that infrastructure, programming, data, and process engineering are aligned under a coordinated strategy. Lloyd said success depends on an “elite-level AI expert” to oversee frameworks, technology, and training.
• Learning, skilling, and responsible adoption: With 39 departments, the city must build a shared understanding of AI use. The focus is on preventing “AI product sprawl” and aligning solutions with city priorities — such as budget directives and executive orders—while improving AI literacy, consistent terminology, and awareness of AI’s impact on workflows and people.
• Partnerships and community activation: The plan connects internal AI efforts with academia, startups, and local organizations to strengthen Seattle’s AI ecosystem. By fostering collaboration and shared understanding around AI safety and innovation, the city enhances both its capabilities and its role as a responsible community partner, Lloyd said.

The use of AI has the ability to reshape how numerous city departments do their work and serve residents. Lloyd pointed to adoption already under way in the Seattle Department of Transportation, where AI and game theory are being used to analyze areas with higher accident rates and find patterns and anomalies in reports and help accelerate design options so safe intersections can be engineered.

Public utilities, public safety and permitting are also ripe for AI disruption, Lloyd said, but the approach is to augment human workers, not automate and displace them.

“There is plenty of space we can look at where staff are overwhelmed,” he said. “We’re not getting to the response level that we aspire to, and there’s areas where we want to make decisions even smarter, even faster. We can take AI and focus on those things, not to displace jobs, but to get to the service levels and decision making that we want to create.”

Seattle has been a leader in creating guidance for AI use, and claims to be the first in the nation to issue a generative AI policy in the fall of 2023. The city has policies requiring “human-in-the-loop” oversight, where employees must review generative AI outputs before official use and attribute any AI-assisted work to the specific technology.

When it comes to the new AI officer and the AI plan, Lloyd stressed the importance of “making sure that we focus on our values and how we apply AI in the organization and the community.”

The annual salary for the CAIO role is between $125,000 and $188,000, according to the job posting.

Whoever comes away with the job will join a city government that is willing and able to work with a number of local “assets,” as Lloyd called them, including the University of Washington, AI House, Ai2, Plug & Play, and more.

“We are the second biggest epicenter of AI talent,” he said. “It would be a really sad thing if we did not take advantage of that opportunity and play to that strength.”