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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655 thoughts onDoorDash Class Action Lawsuit Alleges That Drivers Are Paid ‘Substandard Wages’
Their app glitches sending us the wrong direction we make schedule they sabotage it then tell us it’s our fault not to mention they send you on a couple dollar run it’s a 30 mile round trip it’s slave wages and I’m tired of it
That immigrant comment is all too true especially here in Montana. Bozeman, MT used to be the best place to dash out of any state I’ve ever dashed in and now it’s being over-run by people that don’t even speak English. By don’t speak English I mean like they can’t even say hi….they just show multiple phones with the name on the dash and roll with it. I’ve been dashing for some years now. I took a break and I come back to this…we need to fix a bunch of things PLUS the pay. I haven’t been tracking everything, but I feel the pay is way off. I haven’t had one really great week of over $1,000 and then I never seen that pay again. It is awfully strange.