More than 19 pages of rules stand to add even more costs, create security, privacy issues for businesses and consumers
SEATTLE (March 20, 2025) – More costs on businesses. Higher costs for consumers. Potential safety and privacy concerns for both.
Seattle merchants and business groups are asking the City of Seattle’s Office of Labor Standards (OLS) to make a series of changes to the city’s proposed deactivation rules that stand to add even more to the cost of app-based delivery services in the city.
A series of letters from Washington Alliance partners to the OLS, including the Washington Retail Association, the Seattle Latino Chamber of Commerce, Washington Technology Industry Association and GSBA, underscored concerns about the cumulative cost impacts and safety issues created by these new rules to Seattle merchants, app-based delivery services and customers.
Over the course of just over a year, Seattle has become the most expensive city in the country for app-based delivery. The costs of implementing the city’s deactivation ordinance, delivery pay ordinance, an increase in the minimum wage, higher food and energy costs, and an array of other state and local taxes are having a cumulative impact on businesses.
“WRA has previously testified in opposition to this ordinance, citing concerns about increased costs that would result from its implementation Seattle’s laws have made the city the most expensive market for delivery services in the U.S,.” wrote Mark Johnson, senior vice president for the Washington Retail Association. “These new rules will only cause costs to skyrocket even further and lead to greater losses in the retail industry.”
Kelly Fukai of the WTIA also cited numerous privacy and security concerns in the proposed rules, which create unsafe conditions for businesses and customers who could become the target of a deactivated worker’s actions.
“Under the proposed rules, platforms must share vast amounts of data and information with a deactivated worker, including sharing specific details of an incident with someone who has engaged in violence or assault” wrote Fukai in her letter to OLS. “Even under the best circumstances, the required details that must be shared about an incident could still be used by a bad actor to locate and retaliate against a consumer, restaurant owner, or other member of the public,” she wrote. “This is an overcorrection that jeopardizes public safety and privacy.”
Instead, businesses and trade groups are asking OLS to make a handful of crucial changes to the proposed rules, including:
- Eliminating a provision redefining a deactivation to include any significant change in offers made to worker;
- Giving platforms the flexibility to withhold any records or incident details that could result in a victim or complainant being identified and retaliated against; and
- Ensuring the required processes for platforms to remove a worker are as streamlined and flexible as possible to implement.
Marcos Wanless, founder and CEO of the Seattle Latino Chamber of Commerce underscored the hit these regulations are having on small businesses.
“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. Our member businesses are already struggling under the weight of high costs from the city’s existing delivery laws and regulations,” he wrote.
“Additional costs resulting from these new regulations will only exacerbate a decline in orders.”
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About the WA Alliance for Innovation and Independent Work
WA Alliance for Innovation and Independent Work is a coalition of consumers, independent workers, small businesses, app-based services, and community leaders from across the state that seeks to strengthen and support advancements in the new workplace. Today, flexible jobs, benefits, and innovative services are essential to enhancing Washington’s emerging economic opportunities and empowering the small businesses and workers who are leading and innovating.