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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]
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 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.
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.
Intermediate drivers cannot drive more than a single passenger of any age (family excluded) or drive between 11 p.m. and 5 a.m. unless there is a licensed driver present or until the driver is 18 years of age and has a GDL (Graduated Driver's License). Oregon Department of Transportation, Driver and Motor Vehicle Services Division [111] No 15 years
After a new ruling was passed on May 31, Seattle will become the first city to set a minimum wage for app-based delivery drivers. The Seattle Times reported that the Seattle City Council ...
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]
In 2019, the company announced it would lay off all of its employed drivers, and move to a contract-only model, similar to Grubhub and DoorDash. [5] The move resulted in 2,300 drivers being laid off. [6] Carl Grimstad was appointed Waitr's CEO in 2020 and tasked with recovering the company after a US$291 million net loss in 2019. Despite the ...