Postmates Settles with Couriers: Drivers Receive Settlement Amounts Depending on State

by Norman B. Blumenthal on February 21, 2018

blumenthal nordrehaug bhowmik de blouw llp, southern california employment law, southern california employment law attorneys, misclassification lawsuit, postmates lawsuit, settlement, overtime lawsuit, California lawsuitLast year Postmates reached a settlement agreement with their couriers over allegations that the food-delivery service was incorrectly classifying delivery drivers as independent contractors instead of employees. In a letter to the couriers it became evident that there was one final catch. The amount of “settlement” drivers receive depends on their location – where they made their deliveries.

About Postmates: The Postmates tagline is: Anything, anywhere, anytime. We get it. The service is run through an app accessible through the Apple iTunes Store or the Google Play Store. The majority of interest the service gets is in urban areas for food deliveries. The company offers monthly plans for unlimited deliveries and now even offers an annual rate billed monthly that provides the user with discounts on the regular rate.

The $8.75 million settlement is to be disbursed throughout the class of thousands of both current and former drivers throughout the entire United States. The delivery service company agreed to the settlement only after denying the allegation that the classification of their delivery drivers as independent contractors did not break employment law. Approximately $2.8 million will cover fees, but the rest will be dispensed to individuals who submit claims in response to the letter.

According to the settlement agreement, four states make the most per mile. Massachusetts drivers will receive the highest rate for settlement calculation with California drivers coming in at the second highest rate. The variances are due to details in each jurisdiction’s labor laws. The settlement is pending court approval and the final amount paid out to each driver/courier will depend on the number of claims submitted. According to the letter, California drivers would receive about $0.14 per mile while Massachusetts drivers would receive about $0.20 per mile. Drivers in New York or D.C. can expect about $0.10 per mile and drivers in all other areas should see about $0.07 per mile.

The final settlement hearing for approval is scheduled for April 20, 2018.

If you are afraid that you have been misclassified, please get in touch with one of the experienced employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.

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