San Francisco DA sues DoorDash over workers’ misclassification

| Jun 30, 2020 | Blog, Wage & Hour Laws |

Residents of San Francisco and the state of California may want to know of this recent development regarding the food delivery service DoorDash and the district attorney of San Francisco. He stated that the company had classified its workers as “independent contractors” where they really should be classified as “employees.” This was in violation of state law.

According to RestaurantDive, a June complaint was filed. It said the “dashers” work under the control of the company and that misclassifying them was not a mistake, but a “…calculated decision made to reduce the costs of doing business at the expense of the very workers providing the company’s core service of delivery.”

Since they are classified as independent contractors, these workers deprive the state of the payroll taxes needed. They do not have labor safeguards. DoorDash has an unfair advantage by competing against others who are classifying their workers as employees.

DoorDash insists that these workers, in the gig economy, need jobs with flexibility more than ever. The lawsuit will affect the Dashers, which include students, teachers, parents, retirees and other Californians, depriving them of valuable work opportunities.

If an employee works overtime and is classified as exempt, meaning no protection from hour and wage laws, and is not being properly paid for this time, it may be to their advantage to consult an attorney who is versed in wage and hours issues. Employees can seek a resolution through the law. Many of these employees do no know that there has been a violation of their rights. In fact, groups of employees have taken their employers to court for failure to pay overtime. Consultation with a knowledgeable attorney might educate one as to their rights and help in receiving proper wages for their work.