DoorDash reaches “tentative settlement” on class action lawsuit
On demand delivery specialist DoorDash has reached a “tentative settlement” of a lawsuit over the classification of its delivery workers. The lawsuit, which has been pursued on behalf of a number of “Dashers” by the high-profile lawyer Shannon Liss-Riordan, alleged that DoorDash had misclassified its delivery staff as independent contractors, instead of workers.
In a statement issued on the DoorDash blog yesterday (10 April), DoorDash General Counsel Keith Yandell wrote: “As part of the settlement, we have agreed to pay Dashers $3.5m upon final court approval, plus an additional $1.5m in 4 years, when we IPO, when we are profitable for a full year, or if we are acquired at double our current valuation, whichever comes first.”
Interestingly, Yandell added that DoorDash was also planning to introduce new systems which would “provide the highest rated Dashers with the ability to do more valuable deliveries”.
The lawyer representing the Dasher, Liss-Riordan, has a strong track record in worker misclassification cases: she also secured a settlement in a recent class action lawsuit on behalf of Uber drivers.