pizza-767221_1920

Postmates pays $8.75 million to settle worker misclassification lawsuit

California courts have been dealing with a growing number of worker misclassification cases that have resulted from the expansion of the gig economy. In one such lawsuit, a federal judge recently approved an $8.75 million settlement in a class action against Postmates Inc.

Delivery drivers said the on-demand food courier service misclassified them as independent contractors instead of employees, thereby violating the federal Fair Labor Standards Act as well as California labor laws. The drivers said they were paid below minimum wage and denied worker protections.

The lawsuit, which was filed in March 2015 in the U.S. District Court for the Northern District of California, was resolved without going to trial. The class included tens of thousands of Postmates couriers from California, Massachusetts, Washington, D.C. and New York.

Although Postmates agreed to settle the lawsuit, the company denied any wrongdoing. Before approving the proposed deal, the judge had to decide whether it was fair to both sides. He noted that to date no California court has established whether gig workers like those of Postmates are employees or independent contractors. Therefore, a settlement would likely be the “best hope” for the plaintiffs as there was no guarantee they would win and recover damages at trial.

Postmates also agreed to improve its business practices and provide workers with a clearer termination policy. Couriers will now be allowed to appeal termination decisions in arbitration.

The lawsuit once again shines a spotlight on worker rights in the gig economy. While companies are increasingly using independent contractors instead of hiring full-time employees to cut costs, the practice has raised concerns about the lack of worker protections.

Read more

pregnancy discrimination attorney

How Do I Deal With Pregnancy Discrimination at Work?

The California, Pregnancy Disability Leave Law (PDLL) provides pregnant women up to four months of job-protected leave from work for pregnancy or related health issues. Employees who qualify for family medical leave…

READ ARTICLE
unpaid wage lawyer

Catering workers at Los Angeles airport sue for unpaid overtime

Under California law, employers must pay employees all their wages in a timely manner. This also applies to overtime pay for all hours worked. If an employer is violating the rights of…

READ ARTICLE
gender discrimination lawyer

Southern California restaurant chain pays $150,000 for discriminating against male servers

Sometimes employers will make excuses for allowing or participating in discriminatory conduct. A government agency recently accused a Southern California restaurant chain of citing supposed customer preference as justification for engaging in…

READ ARTICLE
hostile work environment lawyer

African American UCLA worker wins $1.58 million in hostile work environment case

Whether it is a corporate office or a restaurant kitchen, all workplaces are legally required to be free from discrimination and harassment. A hostile work environment is one in which pervasive verbal…

READ ARTICLE
SEEN ON
Fox40-bw
KPIX-bw
SFGate-bw
marin-ij
Abc10-bw