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DoorDash $100 Million Driver Settlement Tentatively Approved

Dec. 22, 2021, 8:37 PM

DoorDash Inc. won tentative approval on Wednesday for a proposed $100 million agreement, which would settle claims that it misclassified delivery drivers in both Massachusetts and California as independent contractors.

Los Angeles Superior Court Judge Amy D. Hogue tentatively agreed to approve what the parties called a “landmark” settlement, which would cover over 900,000 drivers and resolve reimbursement, minimum wage, and overtime claims.

The workers’ attorney, Shannon Liss-Riordan, confirmed the tentative approval after the hearing on Wednesday.

Hogue set another final hearing for Jan. 4, when she says she’d sign the approval order.

The proposed agreement also resolves claims filed by drivers on behalf of the state of California, under the Private Attorneys General Act. That unique law deputized aggrieved employees to seek civil penalties for labor code violations, and designates 75% of penalties to the state’s Labor and Workforce Development Agency.

The settlement allots $12 million to PAGA claims, of which the state will pocket $9 million. That’s one of the largest ever PAGA settlements, the parties told Hogue.

DoorDash is one of a handful of app-based platforms facing lawsuits alleging they misclassified drivers and delivery workers. Postmates Inc., which reached a proposed $32 million settlement with California drivers, will seek final approval of that agreement in the new year. Other companies, including Uber, Lyft, and Instacart, face similar claims for alleged misclassification of workers before the introduction of Proposition 22, which exempts certain app-based drivers from employee classification laws.

The Law Offices of Todd M. Friedman PC and Lichten & Liss-Riordan PC represent the drivers. Littler Mendelson represents DoorDash.

The case is Marko v. DoorDash, Cal. Super. Ct., No. BC659841, 12/22/21.

To contact the reporters on this story: Maeve Allsup in San Francisco at mallsup@bloomberglaw.com; Erin Mulvaney in Washington at emulvaney@bloomberglaw.com

To contact the editors responsible for this story: Meghashyam Mali at mmali@bloombergindustry.com; Jay-Anne B. Casuga at jcasuga@bloomberglaw.com

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