DoorDash will pay $5.3 million to San Francisco to settle allegations over benefits violations

DoorDash settled with San Francisco for $5.3 million | Illustration by Alex Castro / The Verge

Food delivery platform DoorDash has agreed to pay $5.3 million to the city of San Francisco to settle allegations it failed to provide healthcare and paid sick leave to some 4,500 delivery drivers, as the city requires. The company did not admit wrongdoing as part of the settlement, most of which will be used to reimburse drivers who made deliveries in the city between 2016 and 2020, before a new state law covering gig workers took effect.

California’s gig workers law, which voters approved in November 2020 as ballot measure Proposition 22, allows companies like Uber, Lyft, and DoorDash to treat workers as independent contractors, not employees. A judge ruled in August that the law was unconstitutional, but it remains in effect pending…

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Author: Kim Lyons