Earlier this year, a California law went into effect requiring delivery companies like Doordash and Uber to classify their workers as employees. But Doordash, the food delivery company that once vowed to spend millions to fight the new rules, has simply ignored the new law and continued to classify its Dashers as gig workers. In response, the company’s workers have filed 5,800 arbitration claims alleging they’ve been misclassified. Doordash refused to pay the arbitration fees, which totaled an estimated $12 million to $20 million, and tried to force its workers to go to court instead.
Now, a judge has slapped Doordash on the wrist by denying the company’s request to avoid arbitration and the millions in fees. “Doordash, faced with having to actually honor its side of the bargain, now blanches at the cost,” wrote U.S. District Judge William Alsup. Guess Doordash will have to put up with the inconvenience.
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