SAN FRANCISCO (AP) — San Francisco officials said Monday that they secured more than $5.3 million in a settlement from DoorDash on behalf of workers who made deliveries in the city between 2016 and 2020.
The settlement followed an investigation by the San Francisco Office of Labor Standards Enforcement into alleged violations of city labor laws, the office of City Attorney David Chiu said in a statement.
Most of the money will go directly to nearly 4,500 delivery workers and a little over $187,000 will go to cover the labor office’s enforcement costs and to help future enforcement efforts, it said.
DoorDash said it did not admit any wrongdoing as part of the settlement and is not acknowledging that a judge could have found the company to be an employer. A company statement said the settlement was “a fair compromise.”
The investigation followed media reports about DoorDash allegedly misclassifying its workers and using customer tips to subsidize workers’ base pay.
The labor office alleged violations of San Francisco’s health care security and paid sick leave ordinances. The ordinances requires employers with 20 or more workers to spend a minimum amount on health care benefits per covered employee and to provide sick leave to all employees in San Francisco.