Food delivery platform DoorDash has agreed to pay the city of San Francisco $ 5.3 million to settle allegations it failed to provide health care and paid sick leave to some 4 500 delivery drivers, as the city requires. The company has not admitted any wrongdoing as part of the settlement, most of which will be used to reimburse drivers who made deliveries to the city between 2016 and 2020, before a new state law covering concert workers don’t go into effect.
California’s concert workers law, which voters approved in November 2020 as a Proposition 22 voting measure, allows companies like Uber, Lyft and DoorDash to treat workers as independent contractors, not employees. . A judge ruled in August that the law was unconstitutional, but it remains in force pending an appeal from the companies.
“We believe (DoorDash couriers) were misclassified and should have been employees for years,” San Francisco City Attorney David Chiu said. Chronicle of San Francisco, who was the first to report the news on Monday. “It’s not part of the settlement, but it’s the perspective of the city. As part of the settlement announced Monday, most drivers will receive between $ 500 and $ 1,000, and the Chronicle reported that both sides agreed to the settlement to avoid a protracted legal battle.
“We are proud of the flexible income opportunities and the meaningful benefits and protections Proposition 22 offers Dashers across California,” DoorDash spokesperson Briana Megid said in a statement to The edge. “While we deny any wrongdoing, we believe this settlement represents a fair compromise that will allow us to focus on pursuing the best experience for Dashers.”