Judge Questions Settlement Terms in Grubhub Labor Case
A federal judge expressed concerns Thursday about the proposed settlement in a class action lawsuit involving Grubhub and its drivers over alleged misclassification issues.
Settlement Details
The suggested agreement would have Grubhub pay $24.7 million to approximately 60,000 drivers, resolving a lawsuit initiated by Raef Lawson, a former Grubhub driver.
- Lawson alleges Grubhub wrongly classified him as an independent contractor.
- He claims the company failed to provide minimum wage, overtime pay, and full reimbursement for work-related expenses.
Judge’s Concerns
District Judge Jacqueline Scott Corley questioned the validity of settling claims that extend beyond the enforcement of Proposition 22, a California law that exempts app-based drivers from employee status.
“I have one complaint in front of me, and the only plaintiff I have is Mr. Lawson, who I held only had standing up through the enactment of Prop 22. So how can I approve a settlement that pays claims through the present?”
Previously, the judge ruled that Lawson had standing only up to the point when Proposition 22 was enacted by California voters.
Background
Proposition 22 exempts app-based ride-hail and delivery drivers from state law requiring them to be treated as employees with full benefits.
The case reflects ongoing legal struggles over the classification and rights of gig economy workers.
Summary: The judge challenges the settlement’s scope, highlighting legal limits tied to Proposition 22 in Grubhub’s labor dispute involving driver classification and compensation.