FREE CONSULTATIONS:

888.465.5110

NO FEE UNLESS YOU WIN

Postmates pays $8.75 million to settle worker misclassification lawsuit

California courts have been dealing with a growing number of worker misclassification cases that have resulted from the expansion of the gig economy. In one such lawsuit, a federal judge recently approved an $8.75 million settlement in a class action against Postmates Inc.

Delivery drivers said the on-demand food courier service misclassified them as independent contractors instead of employees, thereby violating the federal Fair Labor Standards Act as well as California labor laws. The drivers said they were paid below minimum wage and denied worker protections.

The lawsuit, which was filed in March 2015 in the U.S. District Court for the Northern District of California, was resolved without going to trial. The class included tens of thousands of Postmates couriers from California, Massachusetts, Washington, D.C. and New York.

Although Postmates agreed to settle the lawsuit, the company denied any wrongdoing. Before approving the proposed deal, the judge had to decide whether it was fair to both sides. He noted that to date no California court has established whether gig workers like those of Postmates are employees or independent contractors. Therefore, a settlement would likely be the “best hope” for the plaintiffs as there was no guarantee they would win and recover damages at trial.

Postmates also agreed to improve its business practices and provide workers with a clearer termination policy. Couriers will now be allowed to appeal termination decisions in arbitration.

The lawsuit once again shines a spotlight on worker rights in the gig economy. While companies are increasingly using independent contractors instead of hiring full-time employees to cut costs, the practice has raised concerns about the lack of worker protections.

Read more

California lawmakers urged to take action on sexual harassment in government

California lawmakers are dealing with a growing sexual misconduct scandal that has led to questions about whether there are enough protections available for victims and whistleblowers. One of the driving forces behind...
READ ARTICLE

Amazon employee sues for denied overtime and breaks at distribution center

Amazon workers in California are seeking overtime pay, rest breaks and owed wages, claiming the company violated state laws by repeatedly denying them their rightful compensation. A class-action lawsuit covering workers at...
READ ARTICLE

Silicon Valley startup accused of encouraging sexual behavior in workplace

Silicon Valley has been rocked by one sexual harassment lawsuit after another this year, drawing attention to a pervasive problem that exists in far too many workplaces in the technology sector. In...
READ ARTICLE

What the Grubhub trial could mean for workers in the gig economy

In the first lawsuit of its kind to make it to trial in California, Grubhub fought allegations of misclassifying its drivers as independent contractors instead of employees. Other worker misclassification lawsuits in...
READ ARTICLE
SEEN ON
bloomberg
sfgate
kpix
cnnmoney
marin-ij
dailypost
news10