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June 17, 2020
2020-1586

Seattle, Washington ordinance extends paid sick leave and safe time to gig workers affected by COVID-19

The city of Seattle passed an ordinance on June 12, 2020, that modifies the existing municipal code for paid sick leave and safe time by extending its coverage to gig workers. (Ord 126091.)

Due to the COVID-19 emergency, the ordinance requires that covered hiring entities, food delivery network companies and transportation network companies provide gig workers with paid sick and safe time (PSST) to care for their personal and family members' health conditions or safety needs.

The ordinance is automatically repealed three years after the termination of the civil emergency proclaimed by the Mayor on March 3, 2020; three years after the termination of any concurrent civil emergency proclaimed by a public official in response to COVID-19; or on December 31, 2023, whichever is later.

Covered employers

The requirement applies to gig workers employed in whole or part in Seattle for a:

  1. Food delivery network company offering prearranged delivery services for compensation using an online-enabled application or platform to connect customers with workers for delivery from eating and drinking establishments, food processing establishments, grocery stores, or any facility intended to fulfill customer orders from a business whose business model relies on the delivery of groceries or prepared food and beverages
  2. A transportation network company (TNC) offering prearranged transportation services for compensation using an online enabled application or platform to connect passengers with drivers using a TNC endorsed vehicle

Period of coverage

Hiring entities are required to permit accrual and use of PSST until 180 days after the termination of the civil emergency proclaimed by the Mayor on March 3, 2020 or the termination of any concurrent civil emergency proclaimed by a public official in response to the COVID-19 public health emergency and applicable to the city, whichever is latest.

Accrual requirements

Gig workers who commenced work for the hiring entity before the effective date of the ordinance accrue PSST according to the hiring entity's choice of one of the following accrual methods: ?

  • Gig workers begin accruing PSST on October 1, 2019, or upon commencement of work, whichever is later, and accrue at least one day of paid sick and paid safe time for every 30 days worked.
  • Gig workers accrue at least five days of accrued PSST as of the effective date of the ordinance and subsequently accrue at least one day of PSST for every 30 days worked after the effective date of the ordinance.

Gig workers who commence work for the hiring entity on or after the effective date of the ordinance begin accruing PSST upon commencement of work and accrue at least one day of PSST for every 30 days worked on or after the effective date of the ordinance.

Gig Workers are entitled to use accrued PSST if they have worked for the hiring entity, where the work was performed in whole or part in Seattle, within 90 calendar days before their request to use PSST.

Rate of pay

Hiring entities must pay gig workers their "average daily compensation," an amount based on the gig worker's daily average of compensation (i.e., hiring entity payments for providing services, bonuses, and commissions, as well as tips earned from customers) for each day worked during the highest earning calendar month since October 1, 2019 or since the commencement of work for the hiring entity, whichever is later.

Hiring entities are required to recalculate a gig worker's average daily compensation every calendar month and follow other requirements, such as:

  • Providing monthly notification of the gig worker's average daily compensation and available PSST
  • Waiting until after a gig worker has used PSST for more than three consecutive days to ask for reasonable verification
  • Carrying over up to nine days of accrued, unused PSST to the following calendar year
  • Providing each gig worker with a written notice of rights and PSST policy
  • Retaining records for three years
  • Complying with anti-retaliation prohibitions

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Peter Berard (peter.berard@ey.com)

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