Instacart will pay $5.25 million in a legal settlement with the city of San Francisco following an investigation by the city’s Office of Labor Standards Enforcement, according to an announcement by the city.

A majority of the settlement, $5.1 million, will go to more than 5,000 Instacart workers who provided services and made deliveries in San Francisco between 2017 and 2020. And $150,000 will cover settlement administration and the Office of Labor Standards Enforcement’s costs.

“We hope this sends a strong message that the city aggressively investigates compliance with our labor laws and works hard to ensure workers are treated fairly,” City Attorney David Chiu said.

The office said it began an investigation of Instacart after reports of app-based companies misclassifying workers. The probe focused on Instacart’s compliance with San Francisco’s Health Care Security Ordinance, which requires employers with 20 or more workers to spend a minimum amount on healthcare benefits, and the city’s Paid Sick Leave Ordinance, which requires employers to pay sick leave to all employees in San Francisco.

“These Instacart workers made deliveries and performed this work even during the height of the pandemic, and now they will receive the benefits they are owed,” said Patrick Mulligan, director of the Office of Labor Standards Enforcement.

San Francisco had previously secured a $5.3 million settlement for DoorDash workers in 2021.