Meals supply platform DoorDash has agreed to pay $5.3 million to the town of San Francisco to settle allegations it failed to present healthcare and paid sick depart to some 4,500 supply drivers, as the town requires. The corporate 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 masking gig staff took impact.
California’s gig staff regulation, which voters approved in November 2020 as poll measure Proposition 22, permits firms like Uber, Lyft, and DoorDash to deal with staff as unbiased contractors, not workers. A judge ruled in August that the regulation was unconstitutional, but it surely stays in impact pending an attraction by the businesses.
“We consider (DoorDash couriers) have been misclassified and will have been workers for years,” San Francisco Metropolis Legal professional David Chiu informed the San Francisco Chronicle, which was first to report the information Monday. “That’s not a part of the settlement however it’s the perspective of the town.” 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 chronic courtroom battle.
“We’re pleased with the versatile incomes alternatives and significant benefits and protections Proposition 22 affords Dashers throughout California,” DoorDash spokeswoman Briana Megid mentioned in an announcement emailed to The Verge. “Whereas we deny any wrongdoing, we really feel that this settlement represents a good compromise that will enable us to give attention to persevering with to present the most effective expertise for Dashers.”
DoorDash will pay $5.3 million to San Francisco to settle allegations over benefits violations Source link DoorDash will pay $5.3 million to San Francisco to settle allegations over benefits violations