On-demand food delivery startup DoorDash has reached an agreement with workers rights lawyer Shannon Liss-Riordan regarding a class-action lawsuit that alleged DoorDash misclassified its delivery workers as independent contractors.
As part of the settlement, DoorDash will pay class members of the suit $3.5 million, following the court’s approval. The company has also agreed to pay an additional $1.5 million in four years or when one of three things happen: DoorDash goes public, the company is profitable for a full year, or some other company acquires DoorDash at double its current valuation.
In September 2015, Cynthia Marciano and Evan Kissner both separately filed lawsuits against DoorDash, alleging that DoorDash misclassified them and other delivery workers as independent contractors, and therefore violated certain provisions of the labor code.
The named plaintiffs, Marciano and Kissner, will receive $7,500 each and Liss-Riordan will get up to $1.25 million, according to the settlement. The approximately 33,744 class members, which entail all those who worked for DoorDash as independent contractors at some point between September 23, 2011 through August 29, 2016, and completed at least one delivery, will receive payment as part of the settlement.
Those who “were most active” on DoorDash will “receive proportionally higher payments,” the settlement […]