DoorDash $100M Class Action Settlement for Employment Issues
Disputes between DoorDash and delivery drivers in California and Massachusetts have resulted in a $100 million settlement. The drivers allege they were improperly classified as independent contractors.
Daniel Marko, et al. v. DoorDash Inc.
DoorDash is resolving a series of class-action lawsuits filed in Massachusetts and California while continuing to fight prolonged disputes in those states over employee classification. The company’s proposed settlement for claimants in 11 cases resulted in a surprisingly low reward for workers who have fought for years for employee classification and a minimum salary; $28 million of the $100 million settlement fund has been set aside for attorneys and an estimated $130 for each Dasher who files a claim.
According to a spokesperson for the labor rights campaign, $130 is a joke. Tony Xu, the CEO of DoorDash, earned $413 million last year. They have the finances to pay their employees significantly more.
Xu received one of the highest CEO compensation packages in history last year. While this is happening, DoorDash has set aside around $61 million of its settlement funds to be used to compensate Dashers. DoorDash will provide a total of $10,000 to each of the listed plaintiffs who filed the lawsuits.
That amount falls far short of the demands Dashers had initially made. The settlement brings together two ongoing lawsuits and eight other lawsuits under the 2017 case “Marko v. DoorDash, Inc.,” in which three Dashers petitioned the court to order the company to grant Dashers the employee status to which they are entitled under California’s labor legislation. They argued that, among other things, they were owed compensation for work expenses, overtime pay, and the minimum wage.
Plaintiffs in a class action lawsuit asserted that DoorDash drivers were improperly designated as independent contractors, thereby the alleged violation of the Fair Labor Standards Act (FLSA) and other laws.
Food delivery service DoorDash claims that it has done nothing illegal and that the workers’ designation as contractors was correct.
In this case, the court has not decided in favor of either party.
DoorDash Inc. Delivery Drivers Settlement , 2021
There are two subclasses covered by this settlement:
- The California Settlement Class includes anybody who signed an agreement with DoorDash to utilize the DoorDash mobile app to provide delivery services to consumers in California between August 30, 2016, and December 31, 2020, and who successfully completed at least one delivery in California during that time period. Individuals who signed into individual settlement agreements with DoorDash to resolve and release all of their misclassification claims for the same period are not included in the California Class.
- The Massachusetts Settlement Class comprises anyone in the state who entered into an agreement with DoorDash to utilize the DoorDash app to provide delivery services to Massachusetts consumers between September 26, 2014, and March 31, 2021, and completed at least one delivery in the state during that time period.
Following the deduction of attorneys’ fees and other expenses, the remaining balance of the settlement fund will be utilized to compensate Class Members who have submitted valid claims.
It is anticipated that the money will be distributed to Class Members in proportion to the number of miles driven or traveled while making deliveries through DoorDash.
Members in the class will get a minimum of $10. According to the parties’ estimates, the average settlement payment will be approximately $130, depending on the number of claims filed.
Any funds that remain unclaimed will be re-distributed to eligible Class Members who make legitimate claims and whose second payout would be greater than $20 in value.
Payments may be paid in cash or electronically through PayPal, Venmo, or Zelle.
The final approval hearing for the DoorDash Drivers Settlement will take place on November 30, 2021, according to the settlement agreement.
The deadline for filing a dispute is October 18, 2021.
The last day to opt-out of the settlement or to protest it is November 1, 2021.
Additionally, the deadline to file a claim is November 1, 2021.
Editor’s Note on DoorDash Delivery Drivers Settlement:
This article is written to inform you of the class action settlement filed against DoorDash over classifying its delivery drivers as independent contractors, a violation of FLSA. A similar settlement was earlier agreed upon between Amazon and its Washington-based delivery drivers.
Case Name & No.: Daniel Marko, et al. v. DoorDash Inc., Case No. CGC-18-567869
Jurisdiction: Superior Court of the State of California for the County of Los Angeles
Allegations: DoorDash allegedly misclassified its delivery drivers as independent contractors, a violation of the Fair Labor Standards Act (FLSA)
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