San Francisco reaches $5 million labor settlement with DoorDash

San Francisco simply obtained its largest labor-related settlement in historical past from meals supply app DoorDash.

San Francisco officers introduced Monday that the town had secured a $5.32 million settlement from DoorDash after an investigation into the meals supply app’s labor practices. The payout is now anticipated to be distributed to 4,500 staff within the San Francisco space.

“We live by an period of deep inequality, and nothing could possibly be extra vital than making certain staff are paid pretty, and their advantages are safeguarded,” mentioned Metropolis Lawyer David Chiu in a press assertion . “The Metropolis carried out a radical, diligent investigation that resulted on this unprecedented settlement for San Francisco staff.”


In 2019, San Francisco’s Workplace of Labor Requirements Enforcement investigated DoorDash over alleged violations of the town’s healthcare insurance policies and paid sick depart coverage. The OLSE affirmed 4 violations.

OSLE additionally obtained stories alleging that the corporate was incorrectly classifying staff as contractors and together with buyer ideas within the base pay, diminishing the per-hour fee that DoorDash needed to pay out of pocket. DoorDash’s settlement is the biggest settlement that San Francisco’s labor workplace has ever reached.

Many of the staff named within the lawsuit will obtain payouts between $500 and $1,500. Some payouts can be as excessive as $17,000, in response to the San Francisco Chronicle .

“We’re happy with the versatile incomes alternatives and significant advantages and protections Proposition 22 affords Dashers throughout California,” A DoorDash spokesperson instructed the Washington Examiner. “Whereas we deny any wrongdoing, we really feel that this settlement represents a good compromise that may permit us to give attention to persevering with to offer one of the best expertise for Dashers.”

Proposition 22 was a bit of laws handed in 2020 that exempts “gig economic system” staff from state obligatory worker guidelines.

DoorDash claims that San Francisco-based supply drivers earned greater than $36 an hour on common (together with 100% of their ideas), greater than the app’s $25 nationwide hourly fee.

This isn’t the primary settlement that DoorDash has reached previously yr. In September, the supply firm agreed to a $100 million settlement benefiting drivers who delivered by the app in California and Massachusetts and had been improperly categorized as contractors.

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