The first big settlement from the city’s new lawyer, David Chiu, means money in the hands of some 4,500 local DoorDash drivers who got tips and didn’t get mandatory benefits, with some drivers receiving more of $ 10,000.
About a year ago this time, the founders of DoorDash overnight became billionaires through their booming IPO, and champagne corks were still popping on their backs. Prop. 22 electoral victory who enshrined the engines of the odd-job economy as independent entrepreneurs with no benefits. But before the start of the prop. 22, DoorDash had previously been caught red-handed in the theft of tips from their drivers, and here in San Francisco, the company was apparently not in compliance with a local law setting minimums for workers’ health care coverage and sick leave, even for workers who weren’t classified as employees.
Proposition 22 overhauled their rules to some extent, although its constitutionality is still under dispute in the courts. But there was this period before prop. 22 that they had eliminated their “Dashers” from mandatory health care and sick leave requirements in San Francisco. KPIX reports that new city attorney David Chiu has fought a $ 5.3 million settlement with DoorDash, the largest settlement ever obtained by a rather obscure city hall department called the Office of Labor Standards Enforcement (OLSE) in San Francisco.
“We live in an era of deep inequalities, and nothing could be more important than ensuring that workers are paid fairly and their benefits are protected,” Chiu said in a press release. “The city conducted a thorough and diligent investigation which resulted in this unprecedented settlement for workers in San Francisco.”
This is not a precedent, it only covers the period between 2016 and 2020, and DoorDash has received a withdrawal so that they do not have to admit any wrongdoing. But it’s a great paycheck for drivers as we head into the holidays. According to the Chronicle, “Most of the DoorDash settlement money will go directly to workers, most of whom will receive $ 500 to $ 1,500, although the rewards can go up to $ 17,000, depending on how often couriers have worked from 2016 to 2020. “
“Some workers are receiving payments over $ 10,000, which could be life changing,” Chiu told The Chronicle.
Related: After SF Restaurant Complains, DoorDash Apologizes For “Mistake” In Violating 15% Fee Cap [SFist]
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