Most of the $5.25 million settlement, $5.1 million, is set to go to approximately 5,000 Instacart workers who worked for the company between 2017 and 2020, when they could have been considered employees under existing labor laws.
Instacart must pay more than $5 million to thousands of grocery-delivery workers after agreeing to a settlement with the city of San Francisco, which accused the company of failing to provide benefits required under the city’s laws.
“We hope this sends a strong message that the City aggressively investigates compliance with our labor laws and works hard to ensure workers are treated fairly,” San Francisco City Attorney David Chiu said in a statement Thursday, when the settlement was announced. California’s law changed in 2020 with the passage of Prop. 22. That ballot measure, which for now is law in California, allowed Instacart and other gig companies to treat their workers as independent contractors. Prop. 22 was ruled unconstitutional in 2021, and a coalition of gig companies including Instacart is challenging that ruling. A decision is expected by March.An Instacart spokeswoman said Thursday that the company was “pleased” to have reached the agreement with the city.
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