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DoorDash will pay $5 million to settle class-action lawsuit over independent contractors (TechCrunch)

April 11, 2017

TechCrunch reports on-demand food delivery startup DoorDash has reached an agreement with workers’ rights lawyer Shannon Liss-Riordan regarding a class-action lawsuit that alleged DoorDash misclassified its delivery workers as independent contractors. As part of the settlement, DoorDash will pay class members of the suit $3.5 million, following the court’s approval. The company has also agreed to pay an additional $1.5 million in four years or when one of three things happen: DoorDash goes public, the company is profitable for a full year or some other company acquires DoorDash at double its current valuation. The agreement does not result in reclassification of the workers as employees.