DoorDash to pay delivery workers $5 million in misclassification lawsuit

As on-demand food delivery services such as GrubHub and UberEats grow in popularity, their business practices are coming under increasing scrutiny, often accompanied by legal trouble. One such company is DoorDash, which was hit with a class action lawsuit over worker misclassification.

The startup was accused of misclassifying its food delivery workers as independent contractors instead of employees in violation of the labor code. Lead plaintiffs Evan Kissner and Cynthia Marciano filed two separate worker misclassification lawsuits against DoorDash in September 2015.

The company agreed to a $5 million settlement, pending court approval. The lawsuit’s 33,744 class members will split $3.5 million, with Kissner and Marciano receiving $7,500 each. In addition, DoorDash will pay an extra $1.5 million in four years if it is acquired by another company, is profitable for a year or goes public.

The lawsuit covers individuals who worked as independent contractors to carry out one or more deliveries for DoorDash from September 23, 2011 to August 29, 2016. According to settlement terms, the workers who carried out more DoorDash deliveries will be paid a higher amount.

Although DoorDash agreed to the settlement, the company will not change worker status. Instead, it is making certain polices clearer and providing workers with more rights. Additionally, the settlement does not protect DoorDash from future potential worker misclassification lawsuits.

Addressing the lawsuit, DoorDash General Counsel Keith Yandell posted on the company blog, “We firmly believe that the autonomy and flexibility Dashers love is made possible by, and consistent only with, their status as independent contractors . . . We feel that this settlement represents a fair compromise.”

[footer block_id=’778′]

Read more

women working in tech facing discrimination

Zendesk Accused of Gender Discrimination Against Women Tech Workers

A Bay Area tech company is facing two lawsuits for allegedly fostering a work culture of harassment and gender discrimination. Both lawsuits were filed in the Superior Court of California in San…

READ ARTICLE
DoorDash worker delivering food

DoorDash Workers in San Francisco to Receive 5.3 Million Dollar Settlement

A lawsuit between DoorDash and the city of San Francisco has been resolved with a $5.325 million settlement. The food delivery company was accused of misclassifying workers and not paying them certain…

READ ARTICLE
substation supervisor dealing with racial discrimination

PG&E Employee Sues For Race Discrimination and Retaliation

A longtime PG&E employee sued the utility company for discrimination, claiming he was subjected to a hostile work environment based on his race. The lawsuit was filed in the U.S. District Court…

READ ARTICLE
workplace sexual harassment lawyer

California Lawsuit Alleges Toxic Workplace at Activision Blizzard

The California Department of Fair Employment and Housing (DFEH) recently sued one of the world’s largest video game publishers for sexual harassment, discrimination and unequal pay. The lawsuit has sent shockwaves throughout…

READ ARTICLE
SEEN ON
cnnmoney
marin-ij
dailypost
news10