Grubhub Users Allege Extra Fees Due to Proposition 22 (Correct)

May 3, 2021, 11:54 PM; Updated: May 4, 2021, 6:06 PM

Delivery platform Grubhub Inc. spent millions of dollars campaigning for the passage of a California ballot initiative exempting its drivers from employee status, but didn’t want to pay the costs associated with its passage, and pushed them off onto users, a class action filed Monday in San Francisco alleges.

Proposition 22, the ballot initiative funded by Uber Technologies Inc. and others, exempts app-based drivers and delivery workers from California’s strict worker classification rules, which could previously have required those app-based platforms to classify their workers as employees.

But with the bill’s passage in November, Grubhub is still required to pay ...

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