From JDSupra, Richard Reibstein discusses the settlement of claims against Grubhub alleging their drivers were misclassified as independent contractors. The settlement requires Grubhub to pay $24.75 million but does not require Grubhub to reclassify its drivers. Richard writes:
GRUBHUB TO PAY OVER $24 MILLION IN CLASS ACTION SETTLEMENT WITH CALIFORNIA DELIVERY WORKERS. For the past 10 years, GrubHub, a global online food delivery marketplace, has been vigorously defending itself in a California class action lawsuit brought by a delivery driver alleging IC misclassification in California. See our prior blog posts of February 8, 2018, and April 4, 2023. But the lawsuit is finally coming to a close, as GrubHub and the driver, as the class representative, have reached a $24.75 million settlement covering a class of 60,000 food delivery drivers in California. The lawsuit alleged that, in classifying the drivers as ICs, GrubHub violated California’s minimum wage, overtime, and employee reimbursement laws covering employees. The proposed agreement includes a payment of $1.5 million to the California Labor and Workforce Development Agency under the state’s Private Attorneys General Act. But notably, the agreement is only a monetary settlement and does not require GrubHub to reclassify delivery drivers, whom GrubHub continues to maintain have been properly classified as ICs under California law. Lawson v. Grubhub Inc., No. 3:15-cv-05128 (N.D. Cal. Aug. 13, 2025)