Shipt Drivers: Join the Fight for Fair Pay and Benefits

Attorneys working with ClassAction.org believe Shipt may have violated federal and state labor laws by misclassifying drivers as independent contractors instead of employees, and they’re now gathering affected workers to take legal action.

Specifically, the attorneys believe that Shipt’s relationship with its drivers and shoppers may fit the criteria for an employment relationship under the federal Fair Labor Standards Act (FLSA) and similar state laws, meaning the workers could be entitled to all the rights, protections and benefits of bona fide employees.

By classifying drivers as contractors, who are not covered by the FLSA, Shipt may be attempting to avoid providing benefits like minimum wages, overtime, meal and rest breaks, workers’ compensation and reimbursement of business expenses (such as fuel, maintenance and insurance).

The attorneys believe Shipt drivers may have a legal claim to these benefits and are gathering workers to sign up for mass arbitration against the company.

Whether a worker is an employee or independent contractor is determined by examining their relationship with their employer.

For instance, the “economic realities” of a worker’s situation can help indicate whether they are really in business for themselves, i.e., an independent contractor, or are economically dependent on their employer, i.e., an employee. Multiple factors may be considered, including a worker’s opportunity for profit or loss through their own efforts, investments made by the worker, the permanence of the relationship, the amount of control exercised by the employer, whether the work is integral to the employer’s business, and the skill and initiative required.

Generally, a worker is not an independent contractor if their employer controls the details of how their work is performed and how they’re paid, even if they signed an independent contractor agreement.

Many lawsuits have been filed against companies that have allegedly classified their workers as independent contractors despite maintaining significant control over the details of their jobs—especially in the gig economy. These cases claim that gig workers like delivery drivers have been illegally denied fair pay and benefits like minimum wage, overtime pay, and expense reimbursement.

It’s possible that a contractor classification could affect how much Shipt drivers make. In fact, Shipt driver pay is a much-discussed topic in online forums like Reddit, and many users have pointed out that drivers often make less than minimum wage, especially when deducting the costs of expenses like gas and vehicle maintenance. Some users have also questioned whether working for Shipt is truly being a contractor considering the level of control the company maintains over drivers’ hours and pay.

Is This a Lawsuit? What Am I Signing Up For, Exactly?

You are not signing up for a lawsuit, but rather a process known as mass arbitration. This is a relatively new legal technique that, like a class action lawsuit, allows a large group of people to take action and seek compensation from a company over an alleged wrongdoing. Here is a quick explanation of mass arbitration from our blog:

“[M]ass arbitration occurs when hundreds or thousands of consumers file individual arbitration claims against the same company over the same issue at the same time. The aim of a mass arbitration proceeding is to grant relief on a large scale (similar to a class action lawsuit) for those who sign up.”

Shipt’s terms of service contain both a class action waiver and an arbitration clause requiring users to resolve disputes via arbitration, a form of alternative dispute resolution that takes place outside of court before a neutral arbitrator, as opposed to a judge or jury. It’s for this reason that attorneys working with ClassAction.org have decided to handle this matter as a mass arbitration rather than a class action lawsuit.

How Much Does This Cost?

It costs nothing to sign up, and you’ll only need to pay if the attorneys win money on your behalf. Their payment will come as a percentage of your award.

If they don’t win your claim, you don’t pay.

How Much Money Could I Get?

There are no guarantees as to how much money you could get or whether your claim will be successful. However, it’s possible that Shipt drivers may be able to recover their actual damages, including unpaid wages, unreimbursed expenses or other denied benefits.

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