SAN FRANCISCO, CA — A courier for San Francisco, California-based parcel delivery company Postmates recently filed a proposed class action lawsuit in state court over allegations the startup improperly classified many workers as independent contractors to deprive them of overtime pay and other wages. The lawsuit is one of many similar claims brought by other startups using the so-called “gig economy” model of businesses, framing themselves as meer technology companies giving ordinary people the tools to earn a living for themselves.
According to the class action unpaid overtime lawsuit, filed in San Francisco Superior Court, Postmates misclassified workers by giving employees the designation of “independent contractor” to keep business costs low and increase company profits at the expense of workers. By classifying drivers as independent contractors, the defendant avoided paying employees minimum wage and overtime wages as well as reimbursements for business expenses like gas and vehicle maintenance necessary for them to perform their jobs and fulfill customer orders.
The lawsuit further alleges that Postmates stole from its employees by making deductions from gratuities and even charging workers 15 cents per direct deposit to pay workers for their wage earned. Under California law, it is illegal for employers to make such deductions for direct deposits. The lawsuit claims that the defendant forced workers to accept direct deposit to receive their wages, thus incurring the mandatory 15 cents in deductions each time they received any type of payment from Postmates.
Filed as a proposed class action, the complaint seeks to represent all similarly affected delivery drivers employed by Postmates. According to the claim, that number could be as high as 7,000 to 8,500 individuals in California and another 5,500 to 6,500 in the past four years. The complaint speculates that Postmates employs as many as 20,000 across 27 states in which it does business. Although the complaint is still in its early stages, the number of possible plaintiffs and similar lawsuits against other gig economy companies could result in a huge settlement if one is reached.
Delivery Driver Unpaid Overtime Lawsuits
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you believe that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.