The Seattle Office of Labor Standards has reached a settlement with Amazon Flex over alleged violations of three city laws intended to protect gig workers.

Amazon Flex – a unit of the e-commerce giant that contracts with drivers to deliver items for Amazon business lines – will pay $3.78 million to 10,968 affected workers and $20,000 in fines to the city of Seattle. It is the second-largest settlement in the office’s history, behind a $15 million settlement with Uber Eats.

The Office of Labor Standards alleged Amazon Flex violated the Gig Worker Premium Pay, Gig Worker Paid Sick and Safe Time, and App-Based Worker Paid Sick and Safe Time ordinances by offering premium pay and paid sick and safe time only to workers completing deliveries for the company’s food or grocery business lines, and not to workers who performed package deliveries from Amazon’s warehouses.

Amazon Flex denied all allegations.

“These workers remain a valued part of our workforce today and deserve fair pay and protections,” Seattle Mayor Bruce Harrell said in a statement. “As we work to build a fair and equitable gig economy, this settlement shows how Seattle remains committed to protecting the rights of workers and holding companies accountable when they do not meet their legal obligations.”

The Gig Worker Premium Pay and Gig Worker Paid Sick and Safe Time ordinances were enacted during the COVID-19 pandemic to provide premium pay and allow gig workers to accrue paid sick and safe time. The temporary rules applied to gig workers of food delivery network companies, as well as transportation network companies with more than 250 gig workers worldwide, such as Amazon Flex. These two ordinances are no longer in effect as of October 2022.

The App-Based Worker Paid Sick and Safe Time Ordinance allows app-based workers to accrue one day of paid sick and safe time for every 30 days with at least one work-related stop in Seattle. This can include shopping at a store or making a delivery within city limits.

The Office of Labor Standards’ investigation identified alleged violations of the three laws between Jan. 31, 2021, and Jan. 12, 2024.

Affected workers can expect to see their settlement payments around Jan. 1, 2026, according to the news release.