From unfair to unlawful business practices, Doordash faces another lawsuit from San Francisco District’s Attorney. To reduce their costs, Doordash misclassified employees as independent contractors. A blow in the face to delivery drivers, this suit is seeking $2 500 per violation. An additional fine for seniors or workers with disabilities is solicited.
A long term battle, this suit wants to terminate inappropriate labeling. This lawsuit comes from a series of suits against Uber, Lyft, and Doordash. Standard legislation to limit workplace misconduct is essential in this gig economy. Thus, defining an employee from an independent contractor is the top priority.
In this latest legal challenge, District Attorney Chesa Boudin argues that misclassification implies much more than mislabelling workers. This misclassification contributes to rising inequality and increased workplace standards. With growing demand, it requires other companies to compete on an unfair playing field. In the interim, pressure and inequitable conditions keep climbing endlessly.
Last January, Assembly Bill 5 went into effect to limit discrimination. According to the ABC test, for drivers to classify as independent contractors, they must have their own entity. The company must prove that workers aren’t controlled in any way, shape, or form. The worker also must be regularly employed in an independent trade.
No reasonable interpretation allows Doordash to design their drivers as independent contractors. With the Coronavirus pandemic, the growth in demand is illustrative of their workplace conditions. This on-going battle is a fight for minimum wage, disability, and unemployment insurance. Paid sick leave and overtime are also under strict review.
Under Federal law, Doordash is also required to reimburse gas and mileage. They must compensate for all hours worked, including waiting time. Moreover, state regulations need to be followed flawlessly. Legally mandated, they also have to provide adequate meal breaks and rest periods.
Meanwhile, rideshare and food delivery companies continue to show their disrespect. No stranger to controversy, last year Doordash, faced legal actions as it pocketed customer tips. Instead of supporting excellent customer service, they chose to pay underlying delivery fees.
This 15 billion-dollar company has an impressive list of labor misconducts. Unmistakably, they continue to add to its remarkable record.
Uber and Lyft are also facing a misclassification suit from California Attorney, San Diego, Los Angeles, and San Francisco. While this suit may bring its set of repercussions on essential services, several states remain on guard as legislation may finally develop across the country.
