Door Dash Agrees to Pay $5 Million After Misclassifying Employees
Earlier this year, online restaurant food delivery provider DoorDash agreed to a $5 million settlement after delivery personnel filed a claim stating that they were illegally misclassified as independent contractors.
The four-year-old company agreed to pay their couriers $3.5 million when the deal is finalized, and an additional $1.5 million in four years after the company has either been bought out for twice its current value, has been profitable for an entire year or has undergone an initial public offering. In the DoorDash’s blog post announcing the settlement, the company’s general counsel Keith Yandell credited the “autonomy and flexibility” their couriers enjoy as independent contractors.
“That said, we feel that this settlement represents a fair compromise, addresses valuable dasher feedback, and makes changes that will further cement Dashers’ [the company’s term for their delivery workers] status as independent contractors,” Yandell added. “We look forward to finalizing this settlement and moving forward, so we can continue to focus on offering the best possible experience for Dashers, customers and merchants."
The deal was reached following the filing of two proposed class actions brought by Evan Kissner and Cynthia Marciano who alleged that they weren’t properly paid due to the misclassification. The first of the suits was filed in California court near the end of 2015 before they were later consolidated.
Intentionally misclassifying workers is a serious issue far too many people face in this country, and our Houston attorneys at Bailey Peavy Bailey Cowan Heckaman are committed to fighting for the rights of workers. Call our firm at (888) 367-7160 to speak with an experienced attorney today, or send us the details of your case through our online form to start out with a free consultation.