Wednesday, December 1, 2021

DoorDash will pay $5.3 million to San Francisco to settle allegations over benefits violations

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Food supply platform DoorDash has agreed to pay $5.3 million to town of San Francisco to settle allegations it failed to present healthcare and paid sick depart to some 4,500 supply drivers, as town requires. The firm didn’t admit wrongdoing as a part of the settlement, most of which will be used to reimburse drivers who made deliveries within the metropolis between 2016 and 2020, earlier than a brand new state regulation protecting gig staff took impact.

California’s gig staff regulation, which voters authorized in November 2020 as poll measure Proposition 22, permits corporations like Uber, Lyft, and DoorDash to deal with staff as unbiased contractors, not staff. A choose dominated in August that the regulation was unconstitutional, nevertheless it stays in impact pending an enchantment by the businesses.

“We believe (DoorDash couriers) were misclassified and should have been employees for years,” San Francisco City Attorney David Chiu advised the San Francisco Chronicle, which was first to report the information Monday. “That is not part of the settlement but it is the perspective of the city.” As a part of the settlement introduced Monday, most drivers will get between $500 and $1,000, and the Chronicle reported that each side agreed to the settlement to keep away from a protracted court docket battle.

“We are proud of the flexible earning opportunities and meaningful benefits and protections Proposition 22 affords Dashers across California,” DoorDash spokeswoman Briana Megid stated in a press release emailed to The Verge. “While we deny any wrongdoing, we feel that this settlement represents a fair compromise that will allow us to focus on continuing to provide the best experience for Dashers.”

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