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DoorDash Reaches Deal With Delivery Drivers Over Unpaid Wages

Jan. 26, 2022, 6:52 PM

DoorDash Inc. agreed to settle a Fair Labor Standards Act wage suit involving thousands of delivery drivers across the country over their alleged misclassification as independent contractors rather than employees, according to new filings in California federal court.

The notice of settlement was submitted Tuesday to Judge Edward M. Chen of the U.S. District Court for the Northern District of California. The deal’s terms haven’t yet been disclosed.

Plaintiff Jacob McGrath, who worked as a part-time delivery driver in California, collectively sued DoorDash for FLSA minimum wage violations in August 2019. About 4,000 drivers subsequently told the court they wanted to join the case.

In November 2020, the court granted DoorDash’s bid to enforce individual arbitration agreements against the drivers. The parties attended mediation in July and October 2021.

McGrath claims that he and other drivers were only paid delivery fees and tips because DoorDash only considered the time spent driving from a restaurant to a customer’s location as “working hours.”

For example, McGrath alleges he worked for DoorDash between 10 and 15 hours per week and received about $60 in delivery fees on a 15-hour work week.

Shellist Lazarz Slobin LLP and Debes Law Firm represent the drivers. Gibson, Dunn & Crutcher LLP represents Doordash.

The case is McGrath v. Doordash, Inc., N.D. Cal., No. 3:19-cv-05279, 1/25/22.

To contact the reporter on this story: Kathleen Dailey at kdailey@bloomberglaw.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com; Patrick L. Gregory at pgregory@bloomberglaw.com

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