April 11, 2017 / 9:46 PM / 3 years ago

DoorDash will pay $5 million to settle driver misclassification claims

Restaurant delivery service DoorDash Inc has agreed to pay $5 million to nearly 40,000 drivers in California who said they were misclassified as independent contractors, but the deal will have no effect on the workers’ employment status.

DoorDash in announcing the settlement on Monday said it would pay $3.5 million if the deal is approved by a state judge in San Francisco and $1.5 million in four years or when the company reaches certain benchmarks, including having an initial public offering. The company is represented by Littler Mendelson.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2pr5mpd

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