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DoorDash continues to flout state labor laws by misclassifying its drivers, called “dashers”, subjecting them to low wages and lack of benefits, according to a class action lawsuit.
The company is accused of enriching itself on the backs of its drivers, who receive low pay and no benefits as independent contractors. Allegedly, 97.5 percent of DoorDash’s workforce consists of independent contractors who are denied protections under federal and state labor laws.
“Companies like DoorDash were never supposed to be allowed to run an entire business on the backs of independent contractors,” asserts the lawsuit. “People who work in the company’s core line of business are its ‘employees.’”
The plaintiffs say that DoorDash continues to willfully misclassify its drivers as independent contractors to avoid paying benefits or a minimum wage, but treats them like employees.
“Even though federal, California, Illinois, and Massachusetts law require DoorDash drivers to be classified as ‘employees’ and receive the rights and protections employees get, DoorDash continues to willfully misclassify them as independent contractors, to reap the benefit of their work and maximize its profit,” asserts the class action lawsuit.
The lead plaintiffs say they have all worked as dashers and had similar experiences with the company. They say that they have been responsible for paying for the costs associated with making DoorDash deliveries, including gas, insurance, and mileage, despite the company failing to pay them the federal minimum wage for their work.
Despite the low pay and contractor status, dashers must follow detailed instructions when they begin their DoorDash shift. Failure to follow “precise instructions” can result in termination of their position.
A typical shift begins when the dasher clicks a button on the DoorDash app in order to be assigned orders for delivery, according to the lawsuit. Dasher’s tasks include driving to the assigned restaurant, notifying DoorDash that they have arrived, and picking up or waiting for the food order.
The plaintiffs say an assigned credit card, the Red Card, must be used to pay for the food. Then dashers must drive to the customer’s location, park, follow specific delivery options, and notify DoorDash when the delivery is complete.
According to the class action lawsuit, dashers are evaluated based on a series of factors, including “On Time” delivery, customer ratings, completion rates, and acceptance rates. Plaintiffs say delivery times are tight and do not take into account delays at the restaurant or even with the DoorDash app itself.
In addition, dashers are allegedly penalized for trying to take only high paying or low distance orders, potentially facing deactivation of their account for failing to take on more assignments.
“Dashers with low metrics are terminated,” says the lawsuit. “For example, DoorDash bans drivers from the Dasher App if the driver’s Average Customer Rating falls below 4.2 stars.”
Further, a dasher’s metrics can allegedly affect the quality of deliveries they are assigned along with their pay.
Dashers and DoorDash customers alike are duped by the company’s policy on tips, as well, claim the plaintiffs. Customers may think they are leaving their dasher a tip on top of the fee the driver is paid by DoorDash; however, prior to 2019, dashers received either the guaranteed amount DoorDash would pay for the order or the customer tip – not both.
The plaintiffs seek to represent DoorDash dashers in California, Illinois, and Massachusetts who have not signed the company’s arbitration clause.
Have you worked as a DoorDash dasher? We want to hear about your experience. Tell us in the comment section below!
The lead plaintiffs are represented by Jahan Sagafi, Relic Sun, and Molly Frandsen of Outten & Golden LLP and Steven M. Tindall, Aaron Blumenthal, and Nikul Shah of Gibbs Law Group LLP.
The DoorDash Dasher Class Action Lawsuit is Clifford L., et al. v. DoorDash Inc., Case No. 20-cv-00666, in the U.S District Court Northern District of California.
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620 thoughts onDoorDash Class Action Lawsuit Alleges That Drivers Are Paid ‘Substandard Wages’
So I was originally deactivated because my license expired, but I had my new license in my hand they don’t follow through on the laws of the state. Also, you’re constantly being threatened that you’re going to be deactivated. Or worried about it, you know? Sometimes this extra money does come in handy. You know, especially if you’re on a type budget and there’s only one. Income coming in, but when they take this income from you for no apparent reason. And just say you’re done, and this is how it’s gonna be, and if you like it or not who cares sometimes they don’t pay you. You’ll go to A. You’ll drive 10 miles to a location and who get to the location and. The store is closed or the store order gets canceled and then you’re sitting there. With that 10 mile in 10 mile out, drive such 20 miles and you walked away with absolutely nothing. At 1 point I was averaging about 38 to $4000 a month, but I also became top Dasher. And worked hard to get to it, but they didn’t like that. And I noticed that I wasn’t getting the orders that I was promised. I just promised always hire paying orders. And you wouldn’t get them but also I noticed that a lot of top dashers have been deactivated. Why is because they’re making too much money and it’s taking from DoorDash? I have almost decided to make a facebook page about top dashers and deactivation, so maybe that would help with some more information or some more stories that we can submit to the the judges