The city of San Francisco has reached a $5.235 million dollar settlement with DoorDash over alleged labor law violations.
Most of the money will go directly to the estimated 4,500 DoorDash workers who made deliveries in the Golden City between 2016 and 2020, according to a press release issued Monday. As part of the settlement, DoorDash did not admit to any wrongdoing.
San Francisco’s Office of Labor Standards Enforcement had been investigating the delivery company for violations of its health care and paid sick leave policies after receiving reports that DoorDash was incorrectly classifying its workers as contractors and including customer tips in their base pay.
Most of the DoorDash workers will receive $500 to $1,500, but the awards do go as high as $17,000, the San Francisco Chronicle reports.
This is the largest settlement San Francisco’s labor enforcement office has reached its entire history. According to the San Francisco city attorney, city laws require employers with more than 20 workers to spend a minimum amount of money on healthcare benefits per employee.
“We are living through an era of deep inequality, and nothing could be more important than ensuring workers are paid fairly and their benefits are safeguarded,” San Francisco city attorney David Chiu said in a statement to the Chronicle. “The City conducted a thorough, diligent investigation that resulted in this unprecedented settlement for San Francisco workers.”
In a statement to the Chronicle, DoorDash said they felt the settlement “represents a fair compromise that will allow us to focus on continuing to provide the best experience for Dashers.”
This is not the first time DoorDash has had to pay workers for alleged labor law violations. Earlier this year it reached a $100 million settlement with delivery drivers in California and Massachusetts, according to Top Class Actions.
DoorDash’s competitors in the food delivery business have also been the target of recent labor lawsuits. Uber Eats had to pay a $3.4 million settlement to Seattle drivers for back wages and unpaid sick leave, GeekWire reported in June.
