The on-demand food delivery startup DoorDash agreed to pay $5 million as a settlement of an employment class action. DoorDash is a food delivery service, which operates in 16 cities in the U.S. Among these cities are Brooklyn, San Diego, Oakland, Orange County, etc. Thus, workers who claim that the company misclassified them as independent contractors filed DoorDash employment class action. They mention in their complaints that the company violated some provisions of the labor code.
The plaintiffs who filed DoorDash employment class action are Cynthia Marciano and Evan Kissner. Actually, they filed these lawsuits separately. It is essential to note that DoorDash employment action settlement needs to be approved by the final court.
DoorDash employment class action settlement
In fact, the plaintiffs Cynthia Marciano and Evan Kissner filed Doordash employment class action in 2015. According to the DoorDash employment class action settlement, these two plaintiffs will $7,500. Shannon Liss-Riordan is the workers’ rights lawyer, who represents the members of the employment class action lawsuit. Thus, under the terms of the settlement, she will receive $1.25 million.
The settlement will be split between all the independent contractors. It involves 33,744 members, who work for the food delivery start-up and did one or more than one delivery.
Independent contractors who worked for DoorDash from September 23, 2011, to August 29, 2016, will get a higher settlement. This refers to the workers who demonstrated a higher level of activeness. So, deactivation may happen, if employees violate the company’s rules of engagement. However, other employees may also file a class action lawsuit against the food delivery start-up, if they also faced misclassification.
The resolution aims to improve the company’s policies, as well as to increase the level of the clarity. It doesn’t mean that the independent contractors turn into employees. In addition to that, DoorDash also informed its independent contractors about changes that occurred in the company. Also, DoorDash is planning to use surveys so that independent contractors have the opportunity of providing feedback.