DoorDash Investigation Details
DoorDash drivers may be entitled to compensation for unpaid expenses, higher wages and other benefits. If you or anyone you know has worked for DoorDash as a driver, you may be part of a class action. Please contact us at 424-245-5505 or through the form on this page.
Recent Court News
In April, 2017, the company agreed to pay $5 million to settle the case. A judge will need to approve of the settlement before payments are paid out. It may be a while until final approval and payments. The court was not happy with the settlement and said the settlement was so complex that not even lawyers could understand it. This delayed the case so drivers may not receive full notice and payment for some time.
The settlement will be split among 33,744 members, which includes all independent contractors who worked for the company and completed one delivery or more.
Independent contractors who drove for the company between Sept. 23, 2011 and Aug. 29, 2016 who were “most active” will receive a higher settlement.
Another part of the agreement is that deactivation cannot occur unless an employee has violated DoorDash’s rules of engagement. The platform will also allow employees who are deactivated to appeal the decision under the terms of the settlement.
Stay tuned and subscribe to our newsletter for updates on the case including claims information.
Background
DoorDash is a food delivery service located in 16 cities or regions throughout the country, which include San Francisco, San Jose/Silicon Valley, Oakland, Los Angeles, LA Valley, Orange County, San Diego, Boston, Phoenix, Brooklyn, Manhattan, Washington D.C., Minneapolis and Houston. Customers allegedly use DoorDash to order food and are given an estimated delivery time. DoorDash orders may be placed online or through a mobile app. It has been reported that DoorDash charges the customer a flat fee for every restaurant in which an order was placed and does not require a minimum order size.
To complete these deliveries, DoorDash reportedly hires delivery drivers, or “dashers,” as independent contractors to pick up the food at the restaurant and deliver the food to the customer’s location. It is alleged that DoorDash pays its drivers for the deliveries they complete and drivers may be permitted to accept tips from customers. It has also been reported that Dashers are required to use their personal vehicle to make deliveries and must have their own car insurance, which is monitored every six months. In addition to possessing and using personal vehicles, dashers also must allegedly own and use a personal iPhone or Android smart phone in order to get notice of new delivery orders on their phones.
Labor Commission Ruling
A recent Labor Commission ruling decided that Uber misclassified its drivers as independent contractors. The Commission examined the method and level of control Uber exercised over its drivers and decided that the drivers should be classified as employees. Among other aspects, the Commission examined the alleged control Uber has in connecting clients to the drivers and the payment of the driver wages when making this determination. This ruling may be applicable to DoorDash drivers because Uber’s method and level of control over its drivers appears to be similar to DoorDash. Like Uber, DoorDash reportedly connects drivers to clients and pays drivers for the service. These are just some examples of DoorDash exercising control over its employees in similar ways as Uber. Due to the similar ways the two companies exercise control over its drivers it is possible that the Commission’s recent ruling may apply to DoorDash’s independent contractors as well.
Potential Class Action
If you work for DoorDash or know anyone that has worked as a delivery driver for DoorDash or a similar company, you may be eligible for compensation. Please contact 424-245-5505 or fill out the form on this page.
