Grubhub California Drivers Win $25M Class Action Settlement

• A federal judge granted final approval for a nearly $25 million settlement between Grubhub and its California delivery drivers.
• The settlement resolves claims dating back to 2014, providing relief for thousands of drivers affected by Grubhub's labor practices.
• Each class member will receive no less than $25, contingent on the number of miles they covered during their deliveries.
• Raef Lawson, the lead plaintiff, will receive a $10,000 service award for his role in bringing the class action lawsuit.

The court is pleased to have reached this settlement, which provides a measure of relief for thousands of Grubhub drivers who were affected by these labor laws.

After years of uncertainty, thousands of Grubhub California delivery drivers can finally breathe a sigh of relief as a federal judge granted final approval for a nearly $25 million settlement. The settlement marks the culmination of a decade-long battle that began in 2015 when Raef Lawson, an aspiring actor and Grubhub driver, sued the company alleging minimum wage and expense reimbursement violations. Lawson's case was initially dismissed in 2018, but he persevered, and in 2021, U.S. District Judge Jaqueline Scott Corley reversed her earlier decision, finding that Lawson had indeed been a Grubhub employee all along. This reversal paved the way for the class action lawsuit, which ultimately led to the $25 million settlement.

Proposition 22, a ballot measure passed by California voters in 2020, exempted app-based ride-hail and delivery drivers from state laws requiring them to be treated as employees. However, the Ninth Circuit later ruled that this exemption did not apply to Lawson's case, allowing him to bring his claim under California's Private Attorneys General Act. This ruling had significant implications for the class action lawsuit, as it enabled the plaintiffs to seek civil penalties for labor violations affecting an entire workforce. The settlement ultimately resolves claims through the present day, providing a measure of relief for thousands of Grubhub drivers who were affected by these labor laws.

The $25 million settlement is a significant victory for gig economy workers, who often struggle to secure fair compensation and benefits. The settlement's terms are designed to provide a measure of relief for drivers who were affected by Grubhub's labor practices, with each class member receiving no less than $25, contingent on the number of miles they covered during their deliveries. This development highlights the ongoing struggle for gig economy workers to secure fair compensation and benefits, emphasizing the need for lawyers to stay up-to-date on evolving labor laws and court precedents in this area.

This development highlights the ongoing struggle for gig economy workers to secure fair compensation and benefits, emphasizing the need for lawyers to stay up-to-date on evolving labor laws and court precedents in this area.

Source: Original reporting via Courthouse News