DoorDash Will Pay $5 Million to Settle Class-Action Lawsuit Over Independent Contractors

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From TechCrunch:

By Megan Rose Dickey

On-demand food delivery startup DoorDash has reached an agreement with workers’ rights lawyer Shannon Liss-Riordan regarding a class-action lawsuit that alleged DoorDash misclassified its delivery workers as independent contractors.

As part of the settlement, DoorDash will pay class members of the suit $3.5 million, following the court’s approval. The company has also agreed to pay an additional $1.5 million in four years or when one of three things happen: DoorDash goes public, the company is profitable for a full year or some other company acquires DoorDash at double its current valuation.

In September 2015, Cynthia Marciano and Evan Kissner both separately filed lawsuits against DoorDash, alleging that DoorDash misclassified them and other delivery workers as independent contractors, and therefore violated certain provisions of the labor code.

Read full article from TechCrunch.