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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.
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.
Grubhub, one of the most prolific third-party delivery companies, was just raked over the coals by the FTC in a lawsuit for misleading customers. Grubhub Ordered to Pay $25M Over Junk Fees and ...
Grubhub Holdings contractor lawsuit alleges that Carmen Wallace and Broderick Bryant and other drivers were misclassified as independent contractors and Grubhub defied wage-and-hour requirements under the Fair Labor Standards Act, the Illinois Minimum Wage Law, and the California Labor Code. [63] The plaintiffs in Wallace v.
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]
Online food ordering is the process of ordering food, for delivery or pickup, from a website or other application. The product can be either ready-to-eat food (e.g., direct from a home-kitchen, restaurant, or a virtual restaurant) or food that has not been specially prepared for direct consumption (e.g., vegetables direct from a farm/garden, fruits, frozen meats. etc).
Rideshare and delivery drivers across Nashville will join a national strike on May 1, demanding fair pay and app deactivation protections. What to know. Uber, Lyft, Grubhub and other drivers are ...
[7] [64] [65] [66] Drivers receive a guaranteed minimum per order that is paid by DoorDash by default. When a customer added a tip, instead of going directly to the driver, it first went to the company to cover the guaranteed minimum. Drivers then only directly received the part of the tip that exceeded the guaranteed minimum per order. [66] [67]
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