(The Hill) — Restaurant-delivery service DoorDash will pay $5.3 million to San Francisco-based couriers in a settlement is a dispute over health care benefits, the San Francisco Chronicle reported.
According to the settlement announced on Monday, DoorDash drivers will receive most of the money from the settlement, with most getting amounts up to $500 to $1,000 even though awards can go up as high as $17,000.
San Francisco’s city government will receive $187,953 to cover its expenses, a fraction of the 25 percent contingency fees and expenses private attorneys would charge.
The settlement agreement applies to former employees who worked for DoorDash in the San Francisco area between 2016 and 2020, according to the Chronicle.
“We believe [DoorDash couriers] were misclassified and should have been employees for years,” Attorney David Chiu told the Chronicle. “That is not part of the settlement but it is the perspective of the city.”
The settlement comes as California’s Proposition 22 law will grant freelance workers special status to remain as independent contractors with some benefits and earnings rights.
In a statement, DoorDash said it is proud of the benefits Proposition 22 will offer to its drivers.
“While we deny any wrongdoing, we feel that this settlement represents a fair compromise that will allow us to focus on continuing to provide the best experience for Dashers,” DoorDash said.
According to the settlement, both sides have agreed to avoid the expense, burden and delay of legal proceedings, via the Chronicle.