Minnesota and DC sue Target-owned delivery service Shipt over worker misclassification
The attorneys general of Minnesota and the District of Columbia are suing Target-owned delivery service Shipt for misclassifying workers, CBS News reported. The lawsuits accuse the company of designating its "personal shoppers" (who pick and deliver grocery orders) as independent contractors to avoid paying benefits such as state unemployment insurance and workers' compensation. work accident.
"Increasingly, we are seeing corporations abusing hard-working District residents by fraudulently labeling them as independent contractors and therefore denying them the wages and benefits that are legally due to them," said said DC AG Karl Racine in a statement.< /p>
Shipt said he disagrees with the allegation and that most of his employees prefer to be able to set their own hours. "Shoppers with Shipt are independent contractors, and the flexibility that comes with being an independent contractor is the primary reason Shipt Shoppers choose to win on our platform," spokeswoman Evangeline George told CBS News. Citing its own survey, it said 80% of its employees cite this flexibility as a top priority.
However, Minnesota Attorney General Keith Ellison said the company controls “virtually every facet of a buyer’s job,” although it says workers are self-employed. "Unlike other employees, these workers don't know how much they will be paid on a day-to-day basis, and they often don't receive the minimum wage and overtime to which they are entitled," he added.
The lawsuits seek to recover paid sick leave owed, unpaid wages, payments owed for unemployment insurance, penalties and more. Other delivery companies, including DoorDash, have faced similar lawsuits, and Instacart recently agreed to pay $46.5 million as part of a settlement with the city of San Diego over misclassified workers. Earlier this year, Massachusetts sued Uber and Lyft for identifying drivers as contractors.
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The attorneys general of Minnesota and the District of Columbia are suing Target-owned delivery service Shipt for misclassifying workers, CBS News reported. The lawsuits accuse the company of designating its "personal shoppers" (who pick and deliver grocery orders) as independent contractors to avoid paying benefits such as state unemployment insurance and workers' compensation. work accident.
"Increasingly, we are seeing corporations abusing hard-working District residents by fraudulently labeling them as independent contractors and therefore denying them the wages and benefits that are legally due to them," said said DC AG Karl Racine in a statement.< /p>
Shipt said he disagrees with the allegation and that most of his employees prefer to be able to set their own hours. "Shoppers with Shipt are independent contractors, and the flexibility that comes with being an independent contractor is the primary reason Shipt Shoppers choose to win on our platform," spokeswoman Evangeline George told CBS News. Citing its own survey, it said 80% of its employees cite this flexibility as a top priority.
However, Minnesota Attorney General Keith Ellison said the company controls “virtually every facet of a buyer’s job,” although it says workers are self-employed. "Unlike other employees, these workers don't know how much they will be paid on a day-to-day basis, and they often don't receive the minimum wage and overtime to which they are entitled," he added.
The lawsuits seek to recover paid sick leave owed, unpaid wages, payments owed for unemployment insurance, penalties and more. Other delivery companies, including DoorDash, have faced similar lawsuits, and Instacart recently agreed to pay $46.5 million as part of a settlement with the city of San Diego over misclassified workers. Earlier this year, Massachusetts sued Uber and Lyft for identifying drivers as contractors.
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we may earn an affiliate commission. All prices correct at time of publication.
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