The Washington DC attorney general sued Shipt, a B2C work services platform that offers shopping and delivery services, over its classification of workers as independent contractors.

“Increasingly, we’re seeing companies abuse hard-working district residents by fraudulently calling them independent contractors and, as a result, denying them wages and benefits they are legally owed,” Attorney General Karl Racine said. “At every step of the way, Shipt cheats, putting profits over workers and violating its employees’ basic rights just to make another dollar. We’re using all our authority to level the playing field and hold Shipt accountable for trying to cheat DC workers.”

Another state attorney general was expected to file suit against Shipt later today, according to the DC announcement.

However, a spokesperson for Shipt said the company disagrees with the lawsuit.

“Shoppers with Shipt are independent contractors, and the flexibility that comes with being an independent contractor is the primary reason Shipt shoppers choose to earn on our platform,” Shipt spokesperson Evangeline George said. “We strongly disagree with the action taken by the attorney general for the district, and we’ll continue advocating for shoppers and the opportunity to earn flexible income across the DC area.” 

The DC lawsuit seeks to:

• Recover all unpaid wages and paid sick leave owed to Shipt’s workers.
• Force Shipt to fulfill its legal obligation to pay into the district’s public programs.
• Recover damages and penalties for Shipt’s conduct.

The attorney general’s office argues Shipt’s business depends on misclassifying drivers as independent contractors.