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Grubhub will pay $25 million to settle charges it misled customers about the cost of their delivery and drivers about how much they could earn on the food-delivery platform.
Grubhub drivers are allegedly required to pay some of their expenses. [64] Because of how they are paid, the plaintiffs claim they may often get paid below federal or state minimum wage, even when they work long hours. Many drivers allegedly work more than 40 hours a week but do not receive overtime rates for their work. [65]
The legality of ridesharing companies by jurisdiction varies; in some areas they are considered to be illegal taxi operations, while in other areas, they are subject to regulations that can include requirements for driver background checks, fares, caps on the number of drivers in an area, insurance, licensing, and minimum wage.
Drivers in California are allowed up to 12 driving hours and 16 on duty hours. Drivers for theatrical or television motion picture productions are exempt if the driver operates within a 100 air-mile radius of the location where the driver reports to and is released from work. These drivers may take an 8-hour break, and are allowed 15 hours on duty.
The settlement requires Grubhub to cease the practices and pay $25 million. The agencies sought a $140 million judgment against the company, but reduced it to what Grubhub is able to pay, they said.
It’s meant to simplify how taxpayers — businesses and individuals — calculate their deductible mileage costs. IRS Standard Mileage Rates for 2024 In December 2023, the IRS announced the ...
Chicago-based Grubhub, which allows consumers to order delivery from nearby restaurants via drivers contracted with the company, will pay $24.8 million in restitution, while $200,000 will fund the ...
In 2020, three delivery drivers sued EatStreet for wage theft, accusing EatStreet of failing to reimburse mileage expenses and using tips to meet minimum wage requirements. [15] EatStreet agreed to a $1.2 million settlement, but later in December reported that it would not be able to honor its settlement offer due to financial circumstances. [16]