In 2020, some DoorDash drivers filed a class action lawsuit alleging that the company misclassifies them as independent contractors instead of employees. This enables DoorDash to avoid paying necessary benefits and expenses like minimum wage, overtime pay, sick leave, and reimbursement of work-related costs.
The plaintiffs claim that under California’s ABC test, they qualify as employees based on the high level of control DoorDash exerts over their work. For example, the company sets rules for driver conduct, monitors their activities closely, sets pay rates unilaterally, and restricts working for competitors.
The case seeks to reclassify Dashers in California as employees entitled to back pay, damages, and an order preventing continued misclassification. However, in 2021 a judge ruled that the case can’t proceed as a class action due to the need to evaluate each driver’s job responsibilities individually under the ABC test. Nevertheless, the judge allowed the claims of individual plaintiffs to move forward towards trial.
Much like the DoorDash lawsuits over contractor classification, delivery drivers for Amazon and other companies have also filed legal challenges seeking reclassification and back pay, such as a recent Fuel Save Pro Lawsuit.
Mesa Garage Doors Class Action Lawsuit
In 2022, customers of Mesa Garage Doors filed a proposed class action lawsuit alleging violations of Arizona’s Consumer Fraud Act. According to the complaint, the company engaged in deceptive sales tactics, breached contracts, performed shoddy workmanship, and refused to honor warranties and guarantees on garage door jobs.
The plaintiffs are seeking compensation on behalf of thousands of Mesa Garage Doors’ customers in Arizona dating back to 2018. They allege systemic issues with the contractor based on a pattern of misleading quotes, upcharging, damaging property, abandoning projects, and failing to stand behind their work as promised.
Doordash Lawsuit 2022
In May 2022, DoorDash settled another driver misclassification lawsuit and agreed to pay $5.5 million. The case was brought in 2021 by Dashers in New York seeking employee status and back pay for overtime hours worked.
While denying any wrongdoing, DoorDash chose to settle likely to avoid continuing an expensive court fight and the risk of a damaging ruling if it lost. Going forward, the company indicated it doesn’t plan to reclassify Dashers in New York as employees. However, further legal challenges could still arise in other states concerning contractor classification and related issues like tip disclosure.
A recent study found over 75% of gig economy workers would prefer to be classified as employees, so additional lawsuits are likely in the coming years.
FAQs
What is the current status of the California DoorDash class action lawsuit?
The California lawsuit can no longer proceed as a class action due to the need to assess each driver’s circumstances individually. However, the claims of original plaintiffs are still moving forward to trial against DoorDash on a misclassification theory.
What damages are plaintiffs seeking in the Mesa Garage Doors lawsuit?
The Mesa Garage Doors plaintiffs are seeking compensation for thousands of Arizona customers related to deceptive sales tactics, shoddy workmanship, and failure to honor guarantees dating back to 2018.
What was the outcome of the 2022 New York DoorDash lawsuit?
In 2022, DoorDash agreed to settle a New York driver misclassification lawsuit for $5.5 million. While denying wrongdoing, they chose to settle likely to avoid further legal costs and risk.
Could DoorDash face more contractor classification lawsuits?
Yes, over 75% of gig workers prefer employee status, so DoorDash and its competitors will likely face additional lawsuits in other states demanding reclassification and back pay.
Why is employee versus contractor status so important in these cases?
Employee status would entitle Dashers and other gig workers to minimum wage, overtime pay, reimbursement of expenses, workers compensation, unemployment benefits and more that don’t apply to contractors.
Does the Mesa Garage Doors lawsuit involve driver classification issues?
No, the Mesa lawsuit was filed by customers regarding deceptive sales practices and failure to properly fulfill garage door jobs as opposed to anything related to worker classification.
What tests do courts use to evaluate contractor versus employee status?
California uses the “ABC test,” which assesses degrees of control over workers. Other states analyze factors like the level of supervision, who supplies equipment for the work, and the scope of duties performed.
Were drivers the only plaintiffs in the California DoorDash lawsuit?
No, the 2020 California lawsuit also includes Dashers’ family members who argue they were harmed by the alleged misclassification through loss of family income and companionship.
How common are class action lawsuits against “gig economy” companies?
Very common. Virtually every major platform, including DoorDash, Uber, Lyft and more, faces active or recent class action lawsuits over contractor classification and related issues in multiple states.
A recent study found that over 75% of gig economy workers would prefer to be classified as employees, so additional “doordash class action lawsuits” and legal challenges against competitors are likely in coming years.
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