By Sahid Fawaz
Think your food delivery driver is getting a minimum wage?
Ongoing lawsuits say that you shouldn't be so sure.
"Restaurants that used to deliver their own food are handing over that chore, looking to avoid rising minimum wages and workman’s compensation and health insurance costs.
'We found that two years ago restaurants were laying off their delivery workers,' said Adam Price, founder of three year-old Homer Logistics, a courier service. 'We now employ that person.'
In some instances, delivery companies are classifying their workers as independent contractors and not employees to get around these rising costs.
Price said he classifies his workers as employees.
Last week, Price filed a complaint against Relay Delivery, with a 300-plus workforce, with New York’s Department of Labor alleging that the company improperly classifies workers as independent contractors to avoid paying them benefits and the minimum wage.
Price, who had an employee working at Relay under cover, claims Relay pays $7.50 an hour plus tips — below the $8.30 an hour state minimum for tipped workers.
Relay is not alone.
- In April, DoorDash agreed to pay $5 million to settle a California lawsuit that claimed the food-delivery service misclassified 33,744 workers as independent contractors.
- A Los Angeles driver who delivered food for GrubHub sued the company in 2015 claiming he was wrongly classified as an independent contractor. A federal judge recently denied GrubHub’s attempt to toss the case, and it is slated to go to trial Sept. 5.
- Employees for Postmates, a food-delivery app, have asked a federal judge to approve an $8.75 million settlement of a lawsuit that claimed workers were misclassified as independent contractors."
For more on this story, check out the full New York Post piece here.