From JDSupra, Richard Reibstein reports that Minnesota Attorney General settled its claims with Shipt without requiring Shipt to reclassify its workers as employees. Richard writes:
APP-BASED DELIVERY COMPANY SETTLES IC MISCLASSIFICATION CASE WITH MINNESOTA. Minnesota Attorney General (AG) Keith Ellison, has reached a settlement with app-based same day shopping and delivery company, Shipt, resolving a lawsuit brought by his office alleging IC misclassification of delivery workers referred to as “Shoppers.” A news release issued by the AG’s office on September 26, 2025, announced that the company will pay $800,000 to the state of Minnesota and agreed to improve working conditions for Shoppers by providing them with a written statement explaining which provision of the company’s contract was violated before deactivating a Shopper from the company’s app; formalizing an appeal process for Shoppers to challenge a deactivation decision; continuing to provide Shoppers with certain insurance at no cost; instituting an electronic process by which Shoppers can request forgiveness of customer ratings and late delivery; not retaining any portion of gratuities given to Shoppers; providing Shoppers with timely chat support through the company’s app; not retaliating against any Shopper for cooperating with the AG; and maintaining policies prohibiting discrimination in any way against a Shopper. Nothing in the release appears to suggest that Minnesota required Shipt to reclassify Shoppers as employees. State of Minnesota v. Shipt, Inc., No. 27-CV-22-15991 (Dist. Ct. Hennepin County 4th Jud. Dist. Minn. Oct. 27, 2022).
