Postmates Inc., an on-demand delivery service, will pay $8.75 million to settle wage claims of drivers who say they were misclassified as independent contractors and underpaid in violation of the Fair Labor Standards Act and state laws (Singer v. Postmates, Inc., N.D. Cal., No. 15-cv-1284, preliminary approval of settlement 9/1/17).

A federal district court in California Sept. 1 granted preliminary approval of the settlement, which covers an estimated 127,000 drivers or couriers who used the company’s electronic application and made deliveries in California, New York, Massachusetts, and the District of Columbia.

The settlement provides that the court may...