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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 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.
Grubhub, one of the most prolific third-party delivery companies, was just raked over the coals by the Federal Trade Commission in a lawsuit for misleading customers about the cost of delivery ...
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.
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 ...
Business plan A business plan is essential to many business loan applications. Lenders will want to understand what your business does, how it makes its money and how it will continue to succeed.
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]