Gig workers who deliver packages for companies like Target Shipt, Roadie and DoorDash may be being jipped out of benefits legally owed to them, according to a new class action lawsuit taking shape in California.
Drivers who complete “structured, multi-stop routes” for such delivery services might meet the qualifications of employees rather than contractors, according to Shaun Markley, a partner at Nicholas & Tomasevic law firm, which is soliciting signatures for a prospective case against the employers.
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According to an advertisement paid for by the firm, many route or batch delivery drivers who are currently classified as independent contractors under California’s Proposition 22 (which establishes app-based driver laws) may qualify for benefits under the state’s worker protection laws.
Companies may be erroneously relying on the law, which passed in 2020, Markley wrote. The ballot measure, which passed with 59 percent of the Golden State’s vote, maintains app-based drivers as independent contractors rather than employees, with the stated goal of giving them more agency over their work schedules and the ability to work for multiple enterprises.
The law requires that companies provide some specific benefits, though: a minimum wage worth 120 percent of the local minimum wage (to be paid for time spent driving), reimbursements for fuel, health care stipends and certain insurances. But the proposed class action asserts that certain conditions, like delivering high volumes of packages over long distances, should establish drivers as employees, rather than contractors.
Drivers who have been misclassified under the law may be eligible for back pay and benefits, it added. “By using route or batch delivery drivers and relying on Proposition 22 or other independent contractor laws, these companies leave drivers without overtime pay, meal and rest breaks, expense reimbursement, workers’ compensation, sick leave or other benefits they may be entitled to under state law,” the proposal, found on Top Class Actions, added.
California boasts robust worker protection laws that tend to put the burden of proof on the employer, rather than the worker, when it comes to establishing them as a contractor rather than an employee. As gig work became a burgeoning industry in California (home to many tech platforms that facilitate delivery and rideshare), though, companies increasingly sought to exploit workers by classifying them as independent contractors.
The proposal states that California drivers tasked with delivering more than a dozen packages over long distances—think over 50 miles—could be deemed misclassified under the state’s laws. The suit is primarily focused on Target’s Shipt, DoorDash’s DashLink and Roadie’s routed delivery service, however, other similarly structured organizations that deploy drivers in the same way might also face scrutiny.
Markley wrote that, for example, Shipt (purchased by Target to support its same-day delivery efforts in 2017) employs retail stores as e-commerce hubs, “blurring the lines between in-store retail operations and fulfillment center activities.” Meanwhile, DashLink delivery routes have become more and more structured, to a point where they fulfill a similar function as commercial package delivery. Roadie offers multi-stop and batch deliveries that can take drivers hours to complete and can span large distances.
All of these factors could play into a case for employee misclassification, Markley stated. In response, the law firm is asking delivery drivers who believe they qualify to share their experiences.
Last year, Markley and the Nicholas & Tomasevic law firm won a $4.2 million settlement for long-haul truck drivers for STG Logistics (formerly XPO Logistics) transporting cargo from ports in Los Angeles and San Diego after a judge ruled that they were owed relief for wage and hour violations under California laws. STG subsequently ended its independent contractor owner-operator model in the state.
